The Risk to the Exporter Is Highest with the ____

question 72

Multiple Choice

The risk to the exporter is highest with the ____ method.

• A) prepayment
• B) letter of credit
• C) consignment
• D) open account

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Definitions:

Inflation Rate

A rise in the cost percentage of goods and services in an economy during a certain period.

Depreciate

The gradual reduction in the economic value of tangible fixed assets due to wear and tear over time.

Euro

The Euro is the official currency of the Eurozone, used by 19 of the 27 European Union countries.

Real Exchange Rate

The rate at which two currencies can be exchanged after adjusting for their differing levels of inflation.