If Someone Needs to Make a Payment in the Currency

question 38

True/False

If someone needs to make a payment in the currency of another country, they must have actual possession of that currency.
Tricky.Especially in the day of electronic funds transfer, credit cards, etc.

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Definitions:

Costly Component

Refers to an expensive part or element required in the production of a good or in the provision of a service.

Short-term Debt

Debt obligations, typically due within one year, that are used for financing immediate operational needs of a business.

Working Capital Financing

This refers to short-term loans or credit facilities used by a company to finance its daily operations and manage its current assets and liabilities.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to vendors or suppliers for goods and services received but not yet paid for.