 Question 1

2 out of 2 points

A banker's acceptance
is created when

Correct
Answer: after taking title to the goods via a bill of lading, the importer's bank accepts the
time draft.
 Question 2
2 out of 2 points

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days.
Further assume that the importing bank's acceptance commission is 1 percent and that the
market rate for 90-day B/As is 3.0 percent. Calculate the amount the exporter will receive if he
discounts the B/A with the importer's bank.

Correct Answer:
$9,900,000
 Question 3
2 out of 2 points

The time from acceptance to maturity on a $3,000,000 banker's acceptance is 90 days.

If the importing bank's acceptance commission is 1.25 percent, determine the amount the
exporter will receive if he holds the B/A until maturity.

Correct Answer:
$2,990,625
 Question 4
2 out of 2 points

In a forfaiting transaction, the forfait

Correct Answer:
buys the notes at a discount from face value from the exporter.
 Question 5
2 out of 2 points

An offset transaction

Correct
Answer: can be viewed as a counterpurchase trade agreement involving the
aerospace/defense industry.