1. When an exporter's draft is discounted by his/her bank, the draft is the property of the ________.

a. opening bank

b. discounting bank

c. exporter

d. importer

2. The maximum term of most discounted drafts is ______.

a. 12 months

b. 3 months

c. 6 months

d. 5 years

3. Discounting a ____ is an effective and useful method for transaction financing especially when the _________ is in need of _______.

a. letter of credit, exporter, working capital

b. draft, importer, working capital

c. draft, exporter, new customers

d. draft, exporter, working capital

4. In ________ financing, the exporter pays it supplier using the __________ .

a. purchase order, importer's purchase order

b. Letter of credit, importer's purchase order

c. purchase order, exporter's purchase order

d. Warehouse, importer's purchase order

Group of answer choi