Export/import Financing in Which a Bank Acts as an Intermediary

question 197

Multiple Choice

Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.

• A) documentary collection
• B) letter of credit
• C) buyback
• D) open account

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Definitions:

Book Value Per Share

A financial measure that represents a per share assessment of the minimum value of a company's equity.

Equipment On Credit

The acquisition of machinery or equipment for business operations where payment is made through financing or on a deferred payment plan instead of upfront cash.

Debt-To-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often in the form of loans or bonds.