Which of the following is used to back international sales of goods and services?
A) certificate of deposit
B) bankers' acceptance
C) eurodollar deposits
D) commercial paper

Question

Quizplus · Accepted Answer

Bankers' acceptance is a financial instrument that is widely used for international trade transactions. It serves as a guarantee of payment and reduces the credit risk of the seller. The acceptance is a time draft that is accepted by a bank, creating a legal obligation to pay the face value of the instrument at maturity. This makes it a popular choice for backing international sales of goods and services.

Which of the Following Is Used to Back International Sales