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AFP Certified Treasury Professional CTP Question # 284 Topic 6 Discussion

AFP Certified Treasury Professional CTP Question # 284 Topic 6 Discussion

CTP Exam Topic 6 Question 284 Discussion:
Question #: 284
Topic #: 6

An olive oil producer in Macedonia is arranging for shipment of its product to an international distributor. To support this activity, the company arranges for export financing because:


A.

the currency of the financing is different from the currency of the activity being financed.


B.

the time required to obtain approval is less than for commercial financing.


C.

no government involvement is required.


D.

the interest rate is lower than rates available from commercial sources.


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