Which of the Following Is Not True Regarding a Banker's

question 58

Multiple Choice

Which of the following is not true regarding a banker's acceptance?

• A) The exporter benefits because it does not have to worry about the credit risk of the importer.
• B) The importer benefits because it obtains greater access to foreign markets when purchasing supplies.
• C) The bank guaranteeing the draft earns a commission for creating an acceptance.
• D) It is a sight draft.
• E) All of these are true.

---

Definitions:

Inventory Carrying Costs

The expenses associated with holding and storing unsold goods, including insurance, storage, depreciation, and obsolescence.

Merrill Lynch

A well-known wealth management and investment firm that provides financial advice, investment banking, and other financial services.

Commissions

A form of payment to an agent for services rendered, typically a percentage of the sales they helped to make.

Delivered by People

Delivered by people refers to services or goods provided directly to the consumer through human interaction, emphasizing the personal touch in the delivery process.