Which of the following money market instruments arises from international trade?
A) agency securities
B) bankers' acceptances
C) repurchase agreements
D) fed funds

Question

Quizplus · Accepted Answer

Bankers' acceptances are short-term debt instruments issued by a company that is guaranteed by a commercial bank. They are commonly used in international trade to finance the import, export, or storage of goods. This is because they provide a way for businesses to ensure payment for goods upon delivery, making them a crucial tool in facilitating international trade transactions.

Which of the Following Money Market Instruments Arises from International