Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A)An FI that issues a documentary letter of credit to one of its customers implicitly believes that the customer's credit standing is not sufficiently high enough to engage in international transactions.
• B)An FI that issues a documentary letter of credit to one of its customers implicitly assumes the borrower's credit risk.
• C)An FI that issues a documentary letter of credit to one of its customers has created a contingent asset.
• D)None of the listed options are correct.

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Definitions:

Telegraphic Speech

A child’s first word combinations, which omit (as a telegram did) unnecessary words.

Universal Grammar

A theory in linguistics suggesting that the ability to acquire language is innate to humans and that all languages share a common underlying structure.

Noam Chomsky

An American linguist, philosopher, cognitive scientist, and political activist known for his theory of generative grammar and critique of behaviorism.

Strange Situation

A psychological experiment developed by Mary Ainsworth to assess attachment styles in young children by observing their reactions to separations and reunions with their caregivers.