A Typical Foreign Trade Transaction Requires Three Basic Documents

question 17

Multiple Choice

A typical foreign trade transaction requires three basic documents:

• A)letter of credit, time draft, and bill of lading.
• B)letter of credit, banker's acceptance, and bill of lading.
• C)letter of credit, time draft, and a banker's acceptance.
• D)none of the above

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Definitions:

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

CAPM (Capital Asset Pricing Model)

A financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Market Risk

The risk of losses in investments caused by factors that affect the entire market, such as economic recession or political instability.

Treasury Bonds

Long-term government bonds issued by the Treasury Department with maturity periods typically longer than 10 years.