Which institutions help finance foreign trade in the money market?
AStock brokers and jobbers
BPension and gratuity trusts
CHousing finance companies
DAcceptance and discount houses
Answer & Solution
Correct answer: D. Acceptance and discount houses
Acceptance houses and discount markets accept and discount trade bills, which finances overseas trade.
Keep practising Money Market
Browse all Money Market questions for CA Foundation, or explore more Business Economics topics.
Related questions
Eurodollar deposits are deposits in US dollars held where?Trading companies often buy bankers' acceptances to pay whom?Federal funds are usually lent on what basis?Accrual instruments are issued at face value and mature at what amount?How does a T-bill investor earn a return?Treasury bills (T-bills) are zero-coupon securities maturing in how long?What does a CD ladder strategy do?A longer CD term usually earns a higher rate, except when which condition applies?