Which of the Following Methods of Financing Would Be Used

question 36

Multiple Choice

Which of the following methods of financing would be used if the exporting and importing parties had a strong,long-standing relationship?

• A)documentary credit (letter of credit)
• B)documentary collection
• C)cash in advance
• D)open account
• E)bank draft

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Definitions:

Pegword Method

A mnemonic device that involves linking words with numbers to remember a list of items in order by associating them with pre-memorized peg words.

Dual-Coding Hypothesis

A cognitive theory that suggests information is stored in either or both verbal and visual systems, enhancing memory and learning.

Recall

The act of retrieving information or memories from one's past experiences.

Visually

Relating to the sense of sight or visual imagery.