The Time from Acceptance to Maturity on a $1,000,000 Banker's

question 73

Essay

The time from acceptance to maturity on a $1,000,000 banker's acceptance is 60 days.The importing bank's acceptance commission is 1.00 percent and that the market rate for 60-day B/As is 5 percent.
If the exporter's opportunity cost of capital is 11 percent,should he discount the B/A or hold it to maturity?

Comprehend the role of monetary factors in influencing economic conditions according to monetarists.

Understand supply-side economics objectives and criticisms.

Recognize the significance of constant money supply growth as advocated by some economists.

Grasp the concept of rational expectations in economic policy-making.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

U.S. Fishery

Pertains to the industry or activity of raising, harvesting, processing, and selling fish, shellfish, and aquatic plants in the United States.

Dollar Terms

Refers to financial transactions quoted in terms of the U.S. dollar.

ITQs

Individual Transferable Quotas, a regulatory tool used in managing resources by allotting specific quantities that can be harvested or produced, often applied in fisheries to prevent overfishing.