What Characteristics Do Open Account Arrangements and Consignment Arrangements Have

question 11

Multiple Choice

What characteristics do open account arrangements and consignment arrangements have in common?

• A)Both arrangements require the intervention of a third party to ensure that the arrangement is carried out on all sides.
• B)Both arrangements are based on the assumption that the exchange rate between the importer's currency and the exporter's currency will not change.
• C)Both arrangements require that the exporter rely on the importer's promise to pay for the goods at a specific time in the future.
• D)Both arrangements rely on government guarantees to reduce counterparty risk.

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