A(n) ___________ is an unconditional promise drawn by one party, instructing the buyer to pay the face amount upon presentation.

Related MCQs

• A bill of exchange requesting the bank to pay the face amount upon presentation of documents is a:
• A _______ involves an exchange of currencies between two parties, with a promise to re-exchange currencies at a specified exchange rate and future date.
• A _______ involves an exchange of currencies between two parties, with a promise to re- exchange currencies at a specified exchange rate and future date.
• If countries are highly influential upon each other, the correlations of their economic growth levels would likely be __________. A firm would benefit __________ by diversifying sales among these countries relative to another set of countries that were not influential upon each other.
• Multinational firms face exposure to many different types of international risk. Which of the following is not a type of exposure?
• These are agents whose function is to bring the buyer and the seller into contact.
• A banker's acceptance is a draft drawn on and accepted by a(n) __________.
• Which bill is drawn and accepted in the same country?
• A UK corporation has purchased currency call options to hedge a 70,000 dollar payable. The premium is £0.015 and the exercise price of the option is £0.54. If the spot rate at the time of maturity is £0.59, what is the total amount paid by the corporation if it acts rationally?
• Assume that Parker Company will receive SF 200,000 in 360 days. Assume the following interest rates: UK Switzerland 360-day borrowing rate 7% 5% 360-day deposit rate 6% 4% Assume the forward rate of the Swiss franc is £0.44 and the spot rate of the Swiss franc is £0.42. If Parker Company uses a money market hedge, what equivalent amount could it receive in 360 days?