alleryStart learning →In a multilateral net settlement system, how does each participant settle?
ABy separate partner deals
BBy physical cash only
CBy a refund of fees
DBy one net payment
Answer & Solution
Correct answer: D. By one net payment
Each settling participant settles its own multilateral net position, typically by a single payment or receipt.
Keep practising International Working Capital Management
Browse all International Working Capital Management questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What is the primary objective of netting in financial markets?When does close-out netting normally operate?What does positive pay reduce?What does a lockbox service help a company do?Which bank service moves surplus balances into a money market fund overnight?Which technique converts debtors to cash in short-term financing?Which firm policy directly affects the cash conversion cycle by governing sales on credit?Working capital decisions generally cover what time horizon?