QUESTION 5

McDonald is the most experienced financial officer at

ABC Ltd treasury department. Most of his responsibilities are to ensure that

subsidiaries' bank accounts stay at R450 000 or below. If the subsidiary's

accounts exceed R450 000, the amount by which the account exceeds R450 00 000

is transferred to the head (master account) office account

Which one of the following sweeping strategies is used by McDonald at ABC Ltd?

a.    Predetermine minimum balance

method

b.    Fixed amount sweeping

method  

c.     Threshold sweeping

method

d.    Range-based

sweeping method