Which of the following is not an example of an international trade draft?
A. Time draft
B. Sight draft
C. Both the first and second answers are correct
D. Usance draft
Answer: Option C
Solution(By Examveda Team)
Time draft and Sight draft is not an example of an international trade draft. A sight draft is a type of bill of exchange, in which the exporter holds the title to the transported goods until the importer receives and pays for them. Sight drafts are used with both air shipments and ocean shipments for financing transactions of goods in international trade.This Question Belongs to Management >> International Finance And Treasury
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Question 10.
Assume the nominal interest rates (annual) in the country of Freedonia and the United States are 6% and 12% respectively. What is the implied 90-day forward rate if the current spot rate is 5 Freedonian marks (FM) per U.S. dollar?
Open Hint for Question 10 in a new window.
4.732
4.927
5.074
5.283