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:

Budget Line

An illustration showing all the combinations of two items that can be bought given certain prices and a specified budget.

Price

The amount of money expected, required, or given in payment for something; it acts as a signal for scarcity or abundance of a product.

Budget Line

A depiction showcasing all feasible combinations of two articles that can be purchased, provided there's a fixed budget and the prices remain the same.

Money Income

Money income is the total income received by a household or individual in the form of currency or in transactions, excluding non-monetary benefits.