Question：MH Inc is a multinational company operating in a number of different sectors.
　　Which of the following is an argument in favour of MH centralising its treasury function?
　　A. Diversification of sources of finance
　　B. Speed of response to changing cash positions in the different operating areas
　　C. Better short-term investment opportunities
　　D. Total elimination of foreign currency risk
　　The correct answer is: Better short-term investment opportunities.
　　解析：Short-term investment opportunities will be improved because there will be larger volumes of cash available for investment.
　　The speed of response to local situations is likely to be slower with a centralised treasury function as it will take time for information to be received and collated by the central department.
　　Foreign currency risk will still exist, but centralised treasury will be able to undertake more sophisticated hedging techniques to minimise risk of losses on exchange.
　　If finance was raised locally, MH would have access to a wider variety of sources of funds than if financing was arranged centrally.