International Industries wants to import heavy machinery from a producer located in the Croatia. To facilitate payment to the Croatian firm, International Industries arranged for its bank to issue a banker's acceptance. Under this arrangement, the bank pays the exporter after the equipment passes inspection.

Question

Quizplus · Accepted Answer

A banker's acceptance is a promise that a bank will pay a certain amount at a particular time. No conditions are imposed on payment.

International Industries Wants to Import Heavy Machinery from a Producer