A. Show how the payments will be settled under real time gross settlement (RTGS). (5 marks)

B.Show how the payments will be settled under position netting. (5 marks)

C.Compare to RTGS, what is the advantage of position netting? Use Bank X and Bank Y in the information to explain your answer. (5 marks)

Use the following information for part s A to C. Suppose Bank X has to make the following payments to Bank Y today. Time Amount HKD 10:00 a.m. 10 million 11:00 a.m. 28 million 12:00 noon 23 million And Bank Y has to make the following payments to Bank X today." Time Amount HKD 1:30 p.m. 15 million 2:00p.me 13 million 3:30 p.me 27 million Use the following information for part s A to C. Suppose Bank X has to make the following payments to Bank Y today. Time Amount HKD 10:00 a.m. 10 million 11:00 a.m. 28 million 12:00 noon 23 million And Bank Y has to make the following payments to Bank X today." Time Amount HKD 1:30 p.m. 15 million 2:00p.me 13 million 3:30 p.me 27 million