________ Is Export/import Financing in Which the Importer's Bank Issues

question 124

Multiple Choice

________ is export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document.

• A) Draft
• B) Bill of lading
• C) Letter of credit
• D) Bill of exchange

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, used to deflate nominal GDP to real GDP.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth over time.

Percentage Change

A mathematical calculation to determine the degree of change over time, expressed as a percentage.

Imports

Goods or services brought into one country from another, contributing to the supply in the domestic market and affecting the nation's trade balance.