When acceptances are sold ________, it means that the exporter will have to reimburse the buyer of the acceptance in the case of nonpayment by the importer.

Question

Quizplus · Accepted Answer

When acceptances are sold "with recourse," it means that the seller (in this case, the exporter) retains liability and must reimburse the buyer of the acceptance if the importer fails to pay. Selling "without recourse" would transfer all risk to the buyer of the acceptance, removing the seller's liability for reimbursement in case of nonpayment.

When Acceptances Are Sold ________, It Means That the Exporter