If a U.S. firm wishes to buy products from an overseas supplier, what would the firm use to guarantee payment on a certain date?

A) Currency exchange guarantee
B) Letter of credit
C) Brokerage service
D) Banker's acceptance
E) Security intermediary


Answer: D
Explanation: D) A banker's acceptance requires payment by a particular date. Letters of credit are payable only after certain conditions are met.

Business

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Richard exchanges a building with a basis of $35,000, and subject to a liability of $25,000, for land with a FMV of $50,000 owned by Bill. Bill takes the building subject to the liability. What is the amount of Richard's realized gain?

A. $15,000 B. $0 C. $25,000 D. $40,000

Business

Computer assisted personal interviews tend to be the most expensive mode of data collection per completed response

Indicate whether the statement is true or false

Business

Ms. Teague incurred a $35,000 expense. If her marginal tax rate is 20%, which of the following statements is true?

A. If the expense is nondeductible, Ms. Teague's after-tax cost is zero. B. If only $17,500 of the expense is deductible, Ms. Teague's after-tax cost is $14,000. C. If the expense is deductible, Ms. Teague's after-tax cost is $28,000. D. If the expense is nondeductible, Ms. Teague's after-tax cost is zero and, if the expense is deductible, Ms. Teague's after-tax cost is $28,000.

Business

Full-service stores usually carry more specialty goods for which customers need or want assistance or advice

Indicate whether the statement is true or false

Business