Which of the following is not a means by which banks facilitate foreign trade?
Answer Details
The option that is not a means by which banks facilitate foreign trade is "Open market operations".
Banks facilitate foreign trade by providing various services to importers and exporters, such as currency exchange, letter of credit, discounting bills of exchange, and trade reference. These services help to mitigate the risks associated with international trade and ensure that transactions between parties are carried out smoothly.
However, "Open market operations" are a monetary policy tool used by central banks to regulate the money supply and interest rates in the economy. It involves buying and selling government securities in the open market, which affects the amount of money banks have available to lend and therefore the cost of borrowing for consumers and businesses. While this can have an indirect impact on international trade, it is not a service provided by banks to facilitate foreign trade directly.