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
Q19: Consider an importer that issues a promissory
Q20: A _ provides a summary of freight
Q21: _ is not a type of program
Q22: Which of the following is not a
Q23: A draft drawn on and accepted by
Q25: _ promises to pay the beneficiary if
Q26: The exchange of goods between two parties
Q27: The Working Capital Guarantee Program is administered
Q28: A banker's acceptance is a draft drawn
Q29: The risk to the exporter is highest
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