Question: What is a bankers acceptance? How is one created? Whose liability is it?

What is a banker’s acceptance? How is one created? Whose liability is it?

Step by Step Solution

★★★★★

3.31 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The use of a time draft in a documentary credit creates the oppor... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

116-B-C-F-I-C-F (182).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

How is a trade acceptance created? Whose liability is it? Can it be sold in the international money market?

Q:

What does value-added banker mean, and how and why is this crucial?

Q:

What are the acceptance criteria for NPV? How are they related to the firms market value?

Q:

a) Explain the fundamental financing problem in international trade? b) What is a banker's acceptance? How is one created? Whose liability is it? c) What are the advantages of a documentary credit to...

Q:

Use the financial statements attached to answer (short answers) the following questions (for the city of Richmond, VA) 1. How does the audit opinion given to this city by its independent auditors...

Q:

It is becoming widely expected that interest rates will rise in the coming year. In recent weeks the 10 year US bond has risen from about 1.50% to 1.80%. Using the appendix for chapter 2 on Webster...

Q:

1. Felix draws a check payable to "DeliMart" to buy groceries. Felix's check is most likely a. a certificate of deposit. b. an order to pay. c. a promise to pay. d. a promissory note. 2. Felix draws...

Q:

Calculate the financial ratio for the years 2018, and show the calculagion with the following ratio categories: - Liquidity ratio - activity/ efficiency ratio - leverage/debt ratio 5. PROPERTY, PLANT...

Q:

17. When using the Adjusted Present Value ("APV") model in analyzing a project whose expected future cash flows have differing amounts of risk, could each cash flow be discounted at a different...

Q:

Palomar Health Consolidated Financial Statements as of and for the Years Ended June 30, 2015 and 2014, and Independent Auditors' Report PALOMAR HEALTH TABLE OF CONTENTS Page MANAGEMENT'S DISCUSSION...

Q:

Hart Computer Company has been purchasing carrying cases for its portable computers at a delivered cost of $69 per unit. The company, which it currently operating below full capacity charges factory...

Q:

Calculate the vector cross product ax b when a = 3 + - 2k and b = 4 . A) -21-81-7k B) -2 + 8j + 7k C) D) E) 2 - 8j + 7k 4 + 2k 41-2k

Q:

Edna is living in a retirement home where most of her needs are taken care of, but she has some discretionary spending. Based on the basket of goods in Table 22.5, by what percentage does Ednas cost...

Q:

Tables in the news Find a frequency table of categorical data from a newspaper, a magazine, or the Internet. a) Is it clearly labeled? b) Does it display percentages or counts? c) Does the...

Q:

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate.

Q:

Explain purchasing power parity, both the absolute and relative versions. What causes deviations from purchasing power parity?

Q:

Explain purchasing power parity, both the absolute and relative versions. What causes deviations from purchasing power parity?

Q:

Overnight Publishing Company (OPC) has $3.2 million in excess cash. The firm plans to use this cash either to retire all of its outstanding debt or to repurchase equity. The firms debt is held by one...

Q:

Follow instructions Consider a binomial experiment. If n=470 and p (p-hat) =0.41, find the margin of error E for a confidence interval at a 94% confidence level. {Give your answer to three decimals.}...

Q:

You would like to combine a very risky stock with a beta of 1.85 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market....