Forfaiting, in Which a Bank Purchases at a Discount from an Importer

question 53

Multiple Choice

Forfaiting, in which a bank purchases at a discount from an importer a series of promissory notes in favor of an exporter,

• A)is a short-term form of trade financing.
• B)is a medium-term form of trade financing.
• C)is a long-term form of trade financing.
• D)none of the above

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Definitions:

Bankruptcy Estate

The assets and properties of an individual or entity undergoing bankruptcy, encompassing both tangible and intangible possessions.

Voluntary Chapter 7

A legal process initiated by an individual or business to declare bankruptcy, allowing for the liquidation of assets to pay off debts.

Exemption

A provision that allows an individual or entity to be excused from a usual requirement or rule.

Insolvent Debtors

Individuals or entities that are unable to meet their financial obligations or repay their debts.