Assume that the netting center uses a matrix of payables and receivables to determine the net payer or creditor position of each subsidiary at the date of clearing. The following table shows an example of such a matrix:

(a) Prepare a multilateral netting schedule, such as table 15.3.

(b) Determine the amount of total payments to be reduced by netting.

(c) Determine the percentage reduction in total payments by netting.

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Paying subsidiary Receiving subsidiary USA Japan Germany Canada Total receipts USA $ 800 $ 700 $400 $1,900 Japan $600 - 400 200 1,200 Germany 200 0 300 500 Canada 100 200 500 800 Total payments $900 $1,000 $1,600 $900 $4,400