Answer (A) is correct . Forfaiting is a form of factoring. It involves the sale by exporters of large, medium- to long-term receivables to buyers (forfaiters) who are willing and able to bear the costs and risks of credit and collections.
Answer (B) is incorrect because Countertrade at its simplest is barter?-- the exchange of goods or services for other goods or services rather than merely for cash.
Answer (C) is incorrect because Cross-border factoring is a method of consummating a transaction by a network of factors across borders. The exporter’s factor contacts correspondent factors in other countries to assist in the collection of accounts receivable.
Answer (D) is incorrect because A banker’s acceptance is a time draft drawn on deposits in a bank.
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