- This topic has 3 replies, 3 voices, and was last updated 2 years ago by John Moffat.
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hello! I didn’t understand these questions, please explain answers. Thank you in advance.
Indicate which of the following statements correctly describe the functions that financial intermediaries fulfil for customers and borrowers.
1 Maturity transformation
2 Fund aggregation
3 Dividend creation
4 Pooling of losses
What role would the money market have in a letter of credit arrangement?
Initial arrangement of the letter of credit
Acceptance of the letter of credit
Issuing of a banker’s acceptance
Discounting the banker’s acceptance
Your first question is dealt with in Chapter 2 of our free lecture notes and the free lectures that go with it.
Your second question is covered by the Paper FM technical article entitled “Management of foreign accounts receivable” on the ACCA website.
What is the answer to the second question, please?
“Discounting the bankers acceptance”.
(Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations 🙂 )