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.
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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
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
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.
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Indicate whether the statement is true or false