Future Business Leaders of America (FBLA) Securities and Investments Practice Test

What is the primary purpose of a bankers acceptance?

1. Facilitates accessing loans for corporations

2. Supports government revenues

3. Facilitates importing and exporting

4. Enables personal savings

The correct answer is: Facilitates importing and exporting

The primary purpose of a banker's acceptance is to facilitate importing and exporting by providing an assurance of payment. When a company engages in international trade, it often requires a level of trust that payment will be made for goods and services. A banker's acceptance is a negotiable instrument that a bank guarantees, which can be used in international transactions. It effectively serves as a promise that the bank will pay the holder of the acceptance a specific amount on a future date, often enabling companies to secure financing without immediately having the funds available. This instrument helps to mitigate risk in international dealings, making it easier for companies to conduct trade across borders. In contrast, while accessing loans for corporations, supporting government revenues, and enabling personal savings are important financial activities, they do not specifically align with the primary function of a banker's acceptance in the context of trade transactions. The role of a banker's acceptance is more closely tied to trade assurance and facilitating payment operations than to these broader financial aspects.