Solved

Match the Following with the Items Below

Question 124

Matching

Match the following with the items below:

Premises:
Selling accounts receivable to a financial institution.
This loan features subtraction of the calculated interest payment in advance.
Financing provided by sellers or suppliers in the normal course of business.
An instrument acknowledging that the borrower holds the inventory and proceeds from a sale in trust for the lender.
Using accounts due to the firm as collateral for a loan.
A form of commercial paper sold from a small company to an intermediary network to distribute the paper.
The issuance of a security that pledges the backing of an asset.
A secured borrowing arrangement in which the lender has a general claim against the stock in trade of the borrower.
Uses a series of equal payments to retire a loan.
An inventory-financing arrangement in which inventory used as collateral is stored with and controlled by an independent warehousing company.
An inventory financing arrangement in which collateralized inventory is stored on the premises of the borrower, but is controlled by an independent warehousing company.
A legal agreement to buy or sell a commodity or currency at some specified price in the future.
A form of commercial paper sold from a finance company to a lender. (Also referred to as financial paper.)
Lessening or eliminating risk by taking a position that is the opposite of your initial position.
An unsecured promissory note issued by a large corporation to investors.
Responses:
dealer paper
pledging receivables
trade credit
commercial paper
hedging
installment loan
trust receipt
blanket inventory lien
discounted loan
factoring receivables
securitization of assets
public warehousing
futures contract
field warehousing
direct paper

Correct Answer:

Selling accounts receivable to a financial institution.
This loan features subtraction of the calculated interest payment in advance.
Financing provided by sellers or suppliers in the normal course of business.
An instrument acknowledging that the borrower holds the inventory and proceeds from a sale in trust for the lender.
Using accounts due to the firm as collateral for a loan.
A form of commercial paper sold from a small company to an intermediary network to distribute the paper.
The issuance of a security that pledges the backing of an asset.
A secured borrowing arrangement in which the lender has a general claim against the stock in trade of the borrower.
Uses a series of equal payments to retire a loan.
An inventory-financing arrangement in which inventory used as collateral is stored with and controlled by an independent warehousing company.
An inventory financing arrangement in which collateralized inventory is stored on the premises of the borrower, but is controlled by an independent warehousing company.
A legal agreement to buy or sell a commodity or currency at some specified price in the future.
A form of commercial paper sold from a finance company to a lender. (Also referred to as financial paper.)
Lessening or eliminating risk by taking a position that is the opposite of your initial position.
An unsecured promissory note issued by a large corporation to investors.
Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents