Relatively efficient market can usually provide information on the credit worthiness of a
A. Right
B. Wrong
C. Doesn't say
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What will happen if a draft is stamped "accepted" by a bank?
A. The bank will sell it as soon as possible to the buyer.
B. The draft will become money market funds.
C. Dealers will buy it in the domestic market.
D. The draft becomes a banker's acceptance and will be sold in the money market.
Under a standby letter of credit, ______.
A. evidences of the underlying transaction should be filed first
B. the applicant may be exempted from any liabilities
C. the issuing bank has to pay the beneficiary
D. the issuing bank should pay when the applicant fails to fulfill his obligations
The lifeblood of a successful futures market is ______.
A. big institutions responsible for their own risks
B. fairly sizeable firms
C. independent firms of a few individuals trading for their own account
D. none of the above
Standby letters of credit are relatives of documentary letters of credit because ______.
A. they are very similar to ordinary letters of credit in operation
B. the issuing banks undertake to pay
C. they are normally accompanied by evidences of transactions such as non-negotiable copies of B/L or other documents
D. they call for all kinds of normal documents