Which of the following is not true regarding a banker's acceptance?
A) It can be beneficial to the exporter, as he does not have to worry about the credit risk of the importer.
B) It can be beneficial to the importer, as he may have greater access to foreign markets when purchasing supplies.
C) It can be beneficial to the bank accepting the draft in that it earns a commission for creating an acceptance.
D) It is a sight draft.
E) All of the above are true.
Correct Answer:
Verified
Q26: The risk to the exporter is highest
Q27: Which of the following is not true
Q28: A _ is an unconditional promise drawn
Q30: As part of Ex-Imbank's export credit insurance
Q32: A banker's acceptance is a draft drawn
Q33: In _, the exporter sells accounts receivable
Q34: A draft drawn on and accepted by
Q35: _ promises to pay the beneficiary if
Q36: The _ is a private corporation owned
Q66: Which of the following is not a
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