The decline in bankers acceptances is due to:
A) International firms becoming less of a credit risk
B) Greater utilization of foreign currencies in international transactions
C) Greater reliance on direct bank loans by major exporters and importers
D) A shift by international corporations away from banks and toward the open market
E) B, C and D above

Question

Quizplus · Accepted Answer

The decline in bankers acceptances can be attributed to several factors: B) the increased use of foreign currencies in international transactions allows firms to bypass traditional banking instruments; C) major exporters and importers are relying more on direct bank loans, which can offer more tailored terms and potentially lower costs; and D) there's a trend of international corporations moving away from banks and towards open market instruments, which can offer more flexibility and efficiency. These shifts reflect broader changes in global finance and trade practices.

The Decline in Bankers Acceptances Is Due To