​Consider an Exporter That Ships Products to an Importer on Credit

question 60

Multiple Choice

​Consider an exporter that ships products to an importer on credit. The exporter needs funds immediately, so it obtains a loan from a bank using the account receivable as collateral. This reflects:

• A) ​accounts receivable financing.
• B) ​forfaiting.
• C) ​factoring.
• D) ​a letter of credit.

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Definitions:

Tax Revenue

The income that is gained by governments through taxation.

Anti-Obesity

Pertaining to efforts or measures aimed at preventing or reducing obesity through lifestyle, medical, or societal interventions.

Excise Tax

A tax applied specifically to the sale of certain goods, often including alcohol, tobacco, and fuels.

High-Fat Foods

Foods that contain a high proportion of fat content, which can have various health impacts.