Which of the following is used to back international sales of goods and services?
A) Certificate of deposit
B) Banker's acceptance
C) Eurodollar deposits
D) Commercial paper

Question

Quizplus · Accepted Answer

Banker's acceptance is a financial instrument used to guarantee payment of an international trade transaction. It is issued by a bank on behalf of a buyer/importer and serves as a promise to pay the seller/exporter at a specific date in the future. This reduces the risk for the seller in an international transaction. The other options listed are not typically used for backing international sales of goods and services.

Which of the Following Is Used to Back International Sales