Assume the Time from Acceptance to Maturity on a $4,000,000

question 52

Multiple Choice

Assume the time from acceptance to maturity on a $4,000,000 banker's acceptance is 180 days.Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.

• A)$3,993,750
• B)$3,915,000
• C)$3,975,000
• D)$3,009,375

---

Definitions:

Tolerance

The capacity to accept or endure differences, variations, or opposing viewpoints.

Aversive

Something unpleasant that is avoided; often used in psychology to refer to stimuli that individuals seek to avoid.

Perfectionist

An individual who refuses to accept any standard short of perfection, often leading to meticulousness and a stringent adherence to standards.

Implicitly

In a way that is not directly expressed but is understood or implied.