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CTP · Question #290

(Topic 3) Loss exposures related to treasury management may include which of the following?

The correct answer is D. They both transfer the buyer's credit risk to a third party. Which of the following is NOT true for both bankers' acceptances and trade acceptances?

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Question

  • (Topic 3)

Loss exposures related to treasury management may include which of the following?

Options

  • AThey are both used to finance the shipment of goods.
  • BThey both may be sold to an investor at a discount prior to maturity.
  • CThey are both less expensive forms of financing than loans.
  • DThey both transfer the buyer's credit risk to a third party.

How the community answered

(31 responses)
  • A
    10% (3)
  • B
    3% (1)
  • C
    6% (2)
  • D
    81% (25)

Explanation

Which of the following is NOT true for both bankers' acceptances and trade acceptances?

Topics

#loss exposure#treasury risk#credit risk transfer#trade finance

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