Ultimately, Countertrade Is an Inefficient Way of Doing Business Because

question 27

Multiple Choice

Ultimately, countertrade is an inefficient way of doing business because it ________.

• A)encourages buyers and sellers to use customs brokers to handle exchanges
• B)requires buyers and sellers to negotiate a fair value on the exchange
• C)reduces the risk that the goods sent as payment are of poor quality
• D)eliminates the potential for price and financial distortion

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Definitions:

Brokerage House

A financial institution that buys and sells securities, such as stocks and bonds, on behalf of clients while charging a commission for the service.

Joint Checking Account

A bank account shared by two or more individuals, typically allowing all holders equal access to funds.

Overdraft

A check written on a checking account in which there are insufficient funds to cover the amount of the check.

Joint-Account Owner

An individual who shares ownership and control over a bank account with one or more persons.