Which of the Following Is a Reason Why Commercial Banks

question 27

Multiple Choice

Which of the following is a reason why commercial banks may facilitate international trade?

• A) The exporter may not wish to accept the credit risk of the importer.
• B) The government may impose foreign exchange controls that prevent payment by the importer to the exporter.
• C) The exporter may need financing until payment for the products is received.
• D) All of these are correct.

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Definitions:

Financial Accounting

Financial accounting involves the recording, summarizing, and reporting of monetary transactions from business operations, presented in financial statements.

Flexibility of Reporting

The ability to adapt financial and corporate reporting to meet the specific requirements or preferences of users, enhancing the utility and readability of reports.

Raw Materials Inventory Turnover Ratio

A measure indicating how many times a company's raw material inventory is used up and replaced over a specific period, showing the efficiency in using its raw materials.

Raw Materials Purchased

The cost of raw inputs bought for the production of goods, including commodities like steel, cotton, or plastic.