The Primary Methods of Payment for Foreign Trades,ranked in the Order

question 74

Multiple Choice

The primary methods of payment for foreign trades,ranked in the order of most secure to least secure for the exporter is

• A)open account,consignment,letter of credit/time draft,and cash in advance.
• B)consignment,letter of credit/time draft,cash in advance,and open account.
• C)cash in advance,letter of credit/time draft,consignment,and open account.
• D)cash in advance,letter of credit/time draft,open account,and consignment.

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Definitions:

Average Tax Rate

The ratio of the total taxes paid to the overall income, found by dividing the aggregate amount paid in taxes by the total income.

Income Tax Schedule

A chart or formula used to determine the tax rate applied to various levels of income.

Progressive

Describes a taxation system where the tax rate increases as the taxable amount increases, aiming to distribute the tax burden more equitably.

Regressive

A term often used to describe taxes where the tax rate decreases as the taxable amount increases.