Consider an Importer That Issues a Promissory Note to Pay

question 68

Multiple Choice

Consider an importer that issues a promissory note to pay for the imported capital goods over a period of five years. The notes are extended to an exporter who sells them at a discount to a bank. This reflects:

• A) accounts receivable financing.
• B) forfaiting.
• C) factoring.
• D) a letter of credit.

---

Definitions:

Section 1

Typically refers to a specific section within a legal, regulatory, or legislative document, outlining particular provisions or requirements.

Relevant Market

The specific market segment in which a particular product or service competes, considering both geographical reach and product substitutability.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, often leading to high prices and limited consumer choice.

Relevant Market

The market in which a particular product or service competes, including potential customers and competing products.