Which of the Following Is NOT True About Forfaiting

question 24

Multiple Choice

Which of the following is NOT true about forfaiting?

• A) The exporter is responsible for the quality of delivered goods.
• B) Exporter receives an unconditional cash payment at the time of the transaction.
• C) The exporter sells bank-guaranteed promissory notes at its face value.
• D) The political and commercial risk is carried by the guaranteeing bank.

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Definitions:

Poor

Individuals or populations that lack financial resources and essentials for a minimum standard of living.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, used to identify those living in poverty.

Welfare

Welfare refers to government programs designed to support the well-being of its citizens, especially those in financial need.

Poverty Line

A defined level of income that is considered the minimum necessary to maintain a standard of living.