___________arise from a short-term credit arrangement used by businesses to finance transactionsinvolving firms in foreign countries or firms with unknown credit capacities.

Question

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Banker's acceptances are a type of short-term credit arrangement used by businesses to finance transactions involving firms in foreign countries or firms with unknown credit capacities. They are typically issued by a bank and represent the bank's promise to pay the holder of the acceptance a certain amount of money at a future date. This makes them a reliable form of financing for international trade transactions. Money market mutual funds, Eurodollar deposits, and negotiable certificates of deposit are all types of short-term investments, but they are not specifically designed for financing international trade transactions.

___________Arise from a Short-Term Credit Arrangement Used by Businesses to Finance