_____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.
A) A negotiable certificate of deposit (NCD)
B) A repurchase agreement
C) Commercial paper
D) A banker's acceptance

Question

Quizplus · Accepted Answer

The description provided matches the characteristics of a banker's acceptance, which is a widely used form of trade finance. The other options, such as NCDs and commercial paper, are not specifically designed for financing international trade transactions. Repurchase agreements, or repos, involve the sale and repurchase of securities and are not related to trade finance.

_____________ Is a Promise of Future Payment Issued by a Firm