Which of the Following Incorrectly States the Role of Banks

question 9

Multiple Choice

Which of the following incorrectly states the role of banks in import\export transactions involving a letter of credit (L\C) ?

• A)The exporter's bank is the advising and\or confirming bank.
• B)The importer's bank is the advising and\or confirming bank.
• C)The importer's bank is the advising,confirming,and issuing bank.
• D)The exporter's bank is the advising,confirming,and issuing bank.
• E)The importer's bank is neither advising nor confirming bank.

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Definitions:

Interest Rate

The rate at which interest is paid by borrowers for the use of money that they borrow from lenders.

Pension Fund

A type of investment pool typically set up by an employer to generate stable growth over the long term and provide pensions for employees when they reach the end of their working years.

Quarterly Payments

Quarterly payments are payments made four times a year, often used in the context of dividend distributions to shareholders or in loan repayments.

Compounded Quarterly

Interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, leading to interest amounts that accumulate at a faster rate than annual compounding.