Which of the following statements holds true for multilateral netting?
A)It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
B)It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
C)It refers to raising capital by selling shares of stock across countries.
D)It refers to a set of procedures used to estimate the economic value of an owner's interest in a business.
E)It refers to a technique that companies use to reduce the costs of cross-border payments between three or more subsidiaries.

Question

Quizplus · Accepted Answer

Multilateral netting is a technique used by companies to minimize the costs associated with cross-border payments among multiple subsidiaries, by offsetting amounts owed between them to reduce the total number of transactions and, consequently, the transaction costs.

Which of the Following Statements Holds True for Multilateral Netting