Which of the Following Is NOT True About Forfeiting

question 60

Multiple Choice

Which of the following is NOT true about forfeiting?

• A) The exporter is responsible for the quality of delivered goods.
• B) Exporter receives an unconditional cash payment at the time of the transaction.
• C) The exporter sells bank-guaranteed promissory notes at its face value.
• D) The political and commercial risk is carried by the guaranteeing bank.

---

Definitions:

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific time frame.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Price Elasticity

A measure indicating the extent to which the demand for a merchandise changes following a price adjustment.

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.