Advance payment is commonly used for export/import financing when ________.
A) two parties are unfamiliar with each other
B) the buyer has obtained credit for the transaction
C) the transaction is for a relatively high amount
D) the buyer has good credit rating at banks

Question

Quizplus · Accepted Answer

Advance payment is commonly used when two parties are unfamiliar with each other, as it provides security to the seller that they will receive payment before shipping the goods. It is also used when the buyer has not yet obtained credit for the transaction.

Advance Payment Is Commonly Used for Export/import Financing When ________