The main advantage of using a netting system to settle foreign currency payments is that it
A)drastically reduces the number of payments.
B)increases the number of payments.
C)reduces the number of foreign currencies.
D)None of these options are correct.

Question

Quizplus · Accepted Answer

A netting system allows multiple payments to be combined into a single transaction, thereby reducing the number of individual transactions and associated fees. This can result in significant cost savings and efficiency improvements for businesses that frequently make foreign currency payments.

The Main Advantage of Using a Netting System to Settle