most risky payment method for the exporter company?
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8 - What is the most risky payment method for the exporter company?
A) Payment with acceptance credit
B) Payment by letter of credit
C) Pre-financing
D) Cash against goods
E) Advance payment
Step by step
Solved in 2 steps
- Which of the following refers to the ability of a firm to buy repeatedly from a supplier on trade credit without re-applying for credit? Select one: a. Net terms b. Cash discount c. Open account d. Present value of delayed paymentQUESTION 1 In a forfaiting transaction, the forfait buys the notes at a discount from face value from the importer. buys the notes at a discount from face value from the exporter. redeems the notes at a face value to the exporter. Onone of the options QUESTION 2 Depending on the manner in which firms are affected, political risk can be operational and control risk only transfer, operational, and control risk operational and transfer risk only. transfer and operational risk only Click Save and Submit to save and submit. Chick See All Am O Ht red2-6b What is the concern for credit risk in anover the counter market versus the credit risk in an organized exchange?
- A foreign currency loan is a typical example for O a. Currency Risk O b. Interest rate risk O c. Translation Exposure O d. Transaction ExposureWhat is the ultimate objective of financial management? Question 7 options: to ensure the ROA is higher than ROR to obtain a higher ROR than ROA to ensure that ROA is higher than the cost of financing to collect trade receivables faster than the payment of trade and other payablesExchange rate risk is a. The risk associated with the use of debt financing by companies b. The risk of doing business in a particular industry or environment c. The risk of loss due to imports and exports dominated in other currencies d. The uncertainty about the time element, the price concession, and the conversion to cash. ************************** correct answer please.
- Statement I - Exchange rate risk is a factor that contributes to the difficulty of the company to manage its international creditStatement II - A relaxation in collection policy that lengthens the firm collection period ultimately lengthens the firms operating cycle and cash conversion cycle a. False; False b. True; False c. True; True d. False; TrueMatch the risk with the correct transaction (if any): v The DC appreciates, altering relative prices in the current account A. Risk from translation to the FC firm with DC operations v The DC depreciates, altering relative prices in the current account B. Risk to the seller of goods to the FC buyers v The DC depreciates, altering relative prices in the financial account C. Risk to the foreign investor invested domestically v The DC appreciates, altering relative prices in the financial account D. Risk to the buyer of inputs from FC firms v The DC appreciates, altering the spot FX rate E. RIsk form translation to the DC firm with FC operations F. Risk to the investor invested abroadWhich one of the following is financial instrument is used by the exporter and importer to fulfill their short term financial requirement? O a. Treasury Bills O b. Bankers' acceptances C. Certificate of Deposits O d. Commercial Papers
- D6) Finance What are the costs of extending trade credit? (Be specific please)4 - At what rate is the valuation of demand deposit accounts in foreign currency in the bank account?A) Nominal valueB) Foreign exchange selling rateC) Exchange rateD) With effective purchase rateE) With comparable valueI need answer ASAP 1.b)Bills payable and promissory notes are negotiable instruments and are used mostly to replace_____Select one:O a. financial meansO b. term loansO c. long-term creditO d. trade creditO e. overdraft facilities