Assume the Time from Acceptance to Maturity on a $1,000,000

question 70

Multiple Choice

Assume the time from acceptance to maturity on a $1,000,000 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 180-day B/As is 5.0 percent.Calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.

• A)$906,250
• B)$909,375
• C)$968,750
• D)$993,750

---

Definitions:

Palpating

The technique of examining parts of the body by touch, especially to diagnose illness or ascertain the size, shape, and firmness of organs.

Dehydration

A condition resulting from the excessive loss of body water and electrolytes.

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows for increased blood flow.

Mental Status Examination

A structured assessment of a patient's level of cognitive functioning, including areas such as appearance, mood, and thought processes.