Banks facilitates international trade financing through their relation with other international banks.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	True
B	False

Explanation:

Detailed explanation-1: -Banks are important facilitators of international trade. Besides providing liquidity they guarantee payment for around a fifth of world trade, in particular when the contract enforce-ment of the importing country is weak.

Detailed explanation-2: -Answer: d. Exports provide the foreign currencies needed to pay imports.

Detailed explanation-3: -Export-Import Bank of India (Exim Bank) operates a comprehensive range of financing, advisory and support programmes to promote and facilitate India’s trade and investment with the CIS countries.

Detailed explanation-4: -It is an arrangement in which a bank, acting on the instructions of its customer, is to make payment to a third party against certain stipulated financial or commercial documents-or both.

There is 1 question to complete.