Which of the Following Payment Methods Provides the Exporter with the Strongest

question 30

Multiple Choice

Which of the following payment methods provides the exporter with the strongest protection against risk?

• A)Cash in advance
• B)Letter of credit
• C)Draft
• D)Consignment

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Definitions:

Central Limit Theorem

A statistical theory that states the distribution of the sample mean of a large enough number of independent, identically distributed variables will be approximately normal, regardless of the population's distribution.

Sample Means

The average value of a sample, which is a subset of a larger population, used to estimate the population mean.

Normally Distributed

A statistical distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Standard Deviation

An indicator of the degree to which a dataset's values vary or are spread, showing the distance of the values from the average.