Export Receivables Are Normally Sold at a Discount

question 2

Multiple Choice

Export receivables are normally sold at a discount. The size of the discount depends on the following factors EXCEPT:

• A) overdraft fees.
• B) collection risk.
• C) cost of credit insurance.
• D) size of financing and services fees.

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Definitions:

Gifford Pinchot

An American forester and politician who served as the first Chief of the US Forest Service and was a key figure in the conservation movement.

Scientific Forestry

A method of managing forests based on principles of conservation and sustainability, often through the application of scientific research.

France and Germany

Two major European countries with a complex history of rivalry and cooperation, playing significant roles in European politics and the development of the European Union.

Poland

A country located in Central Europe, known for its historical heritage, cultural contributions, and resilience through periods of conflict and division.