Products & Their RisksQuestion 59 of 398
Banker's acceptances are money-market instruments most commonly used to finance:
a.Long-term corporate expansion projects
b.Municipal infrastructure construction
c.International trade transactions such as imports and exports
d.The federal government's budget deficit
Explanation
A banker's acceptance is a short-term, bank-guaranteed instrument that facilitates international trade by financing goods in transit for importers and exporters. It is not used for long-term expansion, municipal projects, or federal deficits.
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