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

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Definitions:

Pluralistic Societies

Societies that are characterized by the peaceful coexistence of various groups, cultures, or individuals with differing beliefs, values, and lifestyles.

Modernization

The process of adopting newer methods, ideas, and technologies in various aspects of society, aiming for progress in economic, social, and cultural domains.

Traditional Societies

Traditional societies are characterized by a predominantly agrarian and non-industrial culture with social structures and norms defined by customs, traditions, and often, religious beliefs.

Accommodation

In anthropology, refers to an adaptation process by which a people resists assimilation by modifying its traditional culture in response to pressures by a dominant society in order to preserve its distinctive ethnic identity.