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

question 54

Multiple Choice

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

• A) documentary collection
• B) counterpurchase
• C) buyback
• D) open account

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Definitions:

Dividends Account

An account in the general ledger that records payouts to shareholders from the company's earnings.

Permanent Account

An account that is not closed at the end of the accounting period and carries its ending balance into the next period, typically including assets, liabilities, and equity accounts.

Dividends Account

An account in the general ledger that records the amount of dividends declared by a company to be paid to shareholders.

Common Stock Account

An equity account that represents the amount of shares owned by shareholders in a corporation.