Standby Letters of Credit

question 82

Multiple Choice

Standby letters of credit

• A)are a form of swaps.
• B)are a promise by a bank to lend the borrower funds to pay off its maturing commercial paper.
• C)are a promise by a large depositor to provide additional funds to a bank should the bank face an unexpectedly large deposit outflow.
• D)represent the unused balance on a bank credit card.

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Definitions:

Shang Bronzes

Ancient Chinese bronze artifacts, primarily ritual vessels and weaponry, produced during the Shang dynasty (circa 1600–1046 BCE).

Kofun Period

An era in Japanese history (approximately 3rd to 6th centuries CE) characterized by the construction of large tomb mounds known as kofun.

Sarcophagi

Stone coffins, typically adorned with sculptures and inscriptions, used primarily in ancient civilizations for the burial of the dead.

Haniwa

Sculpted fired pottery cylinders, modeled in human, animal, or other forms and placed on Japanese tumuli of the Kofun period.