Which of the Following Is NOT a Factor in the Discounting

question 27

Multiple Choice

Which of the following is NOT a factor in the discounting of a securitized export receivable?

• A)The cost of credit insurance.
• B)The historic collection risk of the importer.
• C)The historic collection risk of the exporter.
• D)The size of the financing and service fees.

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Definitions:

Euros

The eurozone's official currency, adopted by 19 out of the 27 countries in the European Union.

Financial Account

A component of the balance of payments that records transactions involving financial assets and liabilities between residents of a country and the rest of the world.

Monetary Policies

Policies undertaken by a nation's central bank to control the money supply and interest rates to achieve macroeconomic goals.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stability in exchange rates.