Which One of the Following Statements Is Correct About Banker's

question 92

Multiple Choice

Which one of the following statements is correct about banker's acceptances?

• A) They are equivalent to a sight draft.
• B) They represent the norm for installment sales.
• C) The bank guarantees payment of the invoice.
• D) The bank retains title to the merchandise.

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Definitions:

Stock Index Futures

Futures contracts that obligate the buyer to purchase or the seller to sell a specific stock index at a predetermined future date and price.

Multiplier

A factor that quantifies the impact of a change in one economic variable (like investment or government spending) on the overall economy, especially on national income.

Euros

The official currency of the Eurozone, which is used by 19 of the 27 European Union countries.