The Portion of International Business Handled on a Cash-In-Advance Basis

question 32

True/False

The portion of international business handled on a cash-in-advance basis is not large and typically is used when credit is doubtful.

---

Definitions:

Subprime Mortgage

Mortgage for a borrower with a not-so-good credit rating.

Credit Rating

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, typically used as a benchmark for many other loans and credit products.

Bank Deposits

Funds that customers place into a bank account, which can range from savings and checking accounts to fixed deposits.