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CTP · Question #755

(Topic 8) international distributor. To support this activity, the company arranges for export financing because:

The correct answer is D. the interest rate is lower than rates available from commercial sources. See the full explanation below for the reasoning.

Question

  • (Topic 8)

international distributor. To support this activity, the company arranges for export financing because:

Options

  • Athe currency of the financing is different from the currency of the activity being financed.
  • Bthe time required to obtain approval is less than for commercial financing.
  • Cno government involvement is required.
  • Dthe interest rate is lower than rates available from commercial sources.

How the community answered

(46 responses)
  • A
    11% (5)
  • B
    2% (1)
  • C
    7% (3)
  • D
    80% (37)

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