banks on both ends act as intermediaries in processing the shipping documents and collecting payment. This is called:

a.

documents against payment

b.

documentary collections

c.

trade acceptance

d.

documents against acceptance

The opposite of prepayment is:

a.

Consignment

b.

Drafts

c.

Open Account

d.

Letters of Credit

Same as cash in advance. This is:

a.

Drafts

b.

Open Account

c.

Letters of Credit

d.

Prepayment

Bill of exchange, or time draft, drawn on and accepted by a bank. It is the accepting banks obligation to pay the holder of the draft at maturity. This is mean:

a.

Letters of Credit

b.

Bankers Acceptance

c.

Working Capital Financing

d.

Medium-Term Capital Goods Financing