QUESTION 4

By shipping goods under documentary time drafts for acceptance

		the exporter is extending credit to the importer
		the exporter is relinquishing control of the goods in return for a signature on the acceptance to assure it of payment
		the importer guarantees that it will pay cash on delivery
		a and b only

5 points

QUESTION 5

Which of the following attributes of a bankers' acceptance greatly enhances its marketability?

		the authenticity of an accepted draft is separated from the underlying commercial transaction
		the accepted draft may not be dishonored for reason of a dispute between the exporter and importer
		the accepted draft is automatically guaranteed by the Ex im Bank
		a and b only