What Is the Most Favorable Term of Funding for the Importer

question 21

Multiple Choice

What is the most favorable term of funding for the importer?

• A) Space
• B) Time sensitivity
• C) Consignment selling
• D) Check execution

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Definitions:

Payment In Full

The complete settlement of an obligation, such as paying off a loan or a bill, without any remaining balance.

Contractors

Individuals or organizations contracted to perform specific tasks or services for a defined period under agreed terms.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest.

Pure Discount

A financial instrument, such as a zero-coupon bond, that is sold at a discount and pays no interest, only returning the face value at maturity.