In Pledging Accounts Receivable, the Percentage Advanced Against the Adjusted

question 148

True/False

In pledging accounts receivable, the percentage advanced against the adjusted collateral is determined by the borrower based on its overall evaluation on the quality of the acceptable receivables and the expected cost of the liquidation.

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Definitions:

Balance Of Trade

The difference between a country's exports and imports of goods and services, indicating whether a country has a trade surplus or deficit over a specific period.

Trade Deficit

A situation where the value of a country's imports exceeds the value of its exports.

Exports

Goods or services sold by a country to buyers in another country.

Imports

Products or services imported from foreign countries for the purpose of selling.