Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?
A) documentary collection
B) letter of credit
C) advance payment
D) open account

Question

Quizplus · Accepted Answer

Advance payment involves transferring money directly from the importer's bank account to the exporter's bank account before the shipment of goods. This option provides the exporter with the least risk and is often used for smaller transactions, or when the exporter is relatively unknown or located in a high-risk country.

Which of the Following Normally Takes the Form of a Wire