Which of the Following Is Not a Trade Financing Method

question 63

Multiple Choice

Which of the following is not a trade financing method used in international trade from an exporter's perspective?

• A) Accounts receivable financing
• B) Letter of credit
• C) Barter
• D) Open account

---

Definitions:

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls.

Private Individuals

Persons or entities that are not part of the government or public sector, typically referring to ordinary citizens or privately owned entities.

Money Supply

The aggregate quantity of monetary assets within an economy at a determined point in time.

Required Reserve Ratio

The fraction of deposits that banks are obligated to hold in reserve, either in their vaults or at the central bank, and not loan out.