Commutative and Mandate: Difference between pages

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__NOTOC__
1.
''Maths.''


===Multiplication and addition are commutative===
An authoritative command or instruction, for example one given to a bank by its customer.


The commutative property of multiplication means that exchanging the ordering of the items multiplied together makes no difference to the final result.


====Example 1====
2.
3 x 4 gives the same result as 4 x 3.


An account (or bank) mandate completed by a customer to open a new bank account. The mandate specifies which individuals in the customer organisation are authorised to act on the account, in what capacity and up to what limits.


In the first case:


3 x 4 = '''12'''
3.


Agreements regulating the dealing relationship between an organisation and its counterparties, authorising people to conduct transactions, possibly applying limits to the size of deals and procedures concerning settlement, and regulating the opening and closing of transactions. 


In the second case:
Mandates are a key element of treasury [[controls]] and are an essential mechanism for reducing an organisation's dealing risk.


4 x 3 = '''12'''


4.


A bond mandate.


====Example 2====
The commutative property also applies to addition.


4 + 5 gives the same final result as 5 + 4.
== See also ==
 
* [[Board resolution]]
 
* [[Bond mandate]]
Both expressions give the result 9.
 
 
===Division and subtraction are not commutative===
 
The commutative property does not apply to division. The order of items being divided does make a difference to the final result.
 
====Example 3====
20 / 4 gives a different result from 4 / 20.
 
 
In the first case:
 
20 / 4 = '''5'''
 
 
In the second case:
 
4 / 20 = '''0.2'''
 
 
 
====Example 4====
The commutative property does not apply to subtraction.


5 - 3 gives a different result from 3 - 5.
[[Category:Compliance_and_audit]]
 
[[Category:Risk_frameworks]]
 
[[Category:Cash_management]]
The result of the first expression is '''+2'''.
[[Category:Treasury_operations_infrastructure]]
 
The second expression produces '''-2'''.
 
 
 
====Multiplication and addition are also associative====
The [[associative]] and commutative properties apply both to multiplication and addition.
 
For this reason, they are sometimes mixed-up but they are different,
 
 
== See also ==
* [[Associative]]
* [[Distributive]]
* [[Denominator]]
* [[Numerator]]

Revision as of 11:38, 10 February 2017

1.

An authoritative command or instruction, for example one given to a bank by its customer.


2.

An account (or bank) mandate completed by a customer to open a new bank account. The mandate specifies which individuals in the customer organisation are authorised to act on the account, in what capacity and up to what limits.


3.

Agreements regulating the dealing relationship between an organisation and its counterparties, authorising people to conduct transactions, possibly applying limits to the size of deals and procedures concerning settlement, and regulating the opening and closing of transactions.

Mandates are a key element of treasury controls and are an essential mechanism for reducing an organisation's dealing risk.


4.

A bond mandate.


See also

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