Exam 19: Financing International Trade

As part of the Ex-Im Bank's export credit insurance programs, a(an) ____ Policy is generally issued to an administrator, such as a bank, trading company, insurance broker, or government agency, which then administers the policy for multiple exporters.

(Multiple Choice)

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Question 41

A banker's acceptance is a time draft that is issued by a firm and guaranteed by a(n) ____.

(Multiple Choice)

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Question 42

Cross-border factoring involves a network of factors in various countries that assess importers' credit risk.

(True/False)

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Question 43

Consider an exporter that ships products to an importer on credit. The exporter needs funds immediately, so it obtains a loan from a bank using the account receivable as collateral. This reflects:

(Multiple Choice)

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Question 44

The Working Capital Guarantee Program of the Private Export Funding Corporation (PEFCO) encourages commercial banks to extend short-term export financing to eligible exporters by providing a comprehensive guarantee that covers 100 percent of the loan's principal and interest.

(True/False)

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Question 45

Which of the following is not a payment method used for international trade?

(Multiple Choice)

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Question 46

Which of the following payment terms provides the exporter with the greatest degree of protection?

(Multiple Choice)

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Question 47

An irrevocable letter of credit cannot be amended or canceled without the exporter's consent.

(True/False)

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Question 48

Which of the following is not true regarding a banker's acceptance?

(Multiple Choice)

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Question 49

A ____ is a written order from the exporter instructing the importer to pay the face amount either upon presentation or at a specified future date.

(Multiple Choice)

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Question 50

A ____ provides a summary of freight charges and conveys title to the merchandise in an international shipment.

(Multiple Choice)

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Question 51

A bank issuing a letter of credit on behalf of an importer is obligated to make the payment due under the letter of credit regardless of the importer's willingness or ability to pay.

(True/False)

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Question 52

The commission that a bank charges for a banker's acceptance is referred to as the all-in rate; it is the only cost involved in an acceptance.

(True/False)

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Question 53

Consider an importer that issues a promissory note to an exporter to pay for imported capital goods over a period of five years. The exporter sells the note at a discount to a bank. This reflects:

(Multiple Choice)

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Question 54

Which of the following is not a program of the Export-Import Bank of the United States?

(Multiple Choice)

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Question 55

In a ________ or clearing-account arrangement, the delivery of products to the importer is compensated for by the exporter's buying back a certain amount of the product from the importer.

(Multiple Choice)

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Question 56

Which of the following is not a document that might be included in the documents for an international shipment under a letter of credit?

(Multiple Choice)

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Question 57

The Direct Loan Program is administered by the:

(Multiple Choice)

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(74)

Question 58

When products are shipped under a ______, the importer that accepts the draft is promising to pay the exporter at a specified future date.

(Multiple Choice)

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Question 59

The Working Capital Guarantee Program is administered by the:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 66

Exam 19: Financing International Trade

As part of the Ex-Im Bank's export credit insurance programs, a(an) ____ Policy is generally issued to an administrator, such as a bank, trading company, insurance broker, or government agency, which then administers the policy for multiple exporters.

A banker's acceptance is a time draft that is issued by a firm and guaranteed by a(n) ____.

Cross-border factoring involves a network of factors in various countries that assess importers' credit risk.

Consider an exporter that ships products to an importer on credit. The exporter needs funds immediately, so it obtains a loan from a bank using the account receivable as collateral. This reflects:

The Working Capital Guarantee Program of the Private Export Funding Corporation (PEFCO) encourages commercial banks to extend short-term export financing to eligible exporters by providing a comprehensive guarantee that covers 100 percent of the loan's principal and interest.

Which of the following is not a payment method used for international trade?

Which of the following payment terms provides the exporter with the greatest degree of protection?

An irrevocable letter of credit cannot be amended or canceled without the exporter's consent.

Which of the following is not true regarding a banker's acceptance?

A ____ is a written order from the exporter instructing the importer to pay the face amount either upon presentation or at a specified future date.

A ____ provides a summary of freight charges and conveys title to the merchandise in an international shipment.

A bank issuing a letter of credit on behalf of an importer is obligated to make the payment due under the letter of credit regardless of the importer's willingness or ability to pay.

The commission that a bank charges for a banker's acceptance is referred to as the all-in rate; it is the only cost involved in an acceptance.

Consider an importer that issues a promissory note to an exporter to pay for imported capital goods over a period of five years. The exporter sells the note at a discount to a bank. This reflects:

Which of the following is not a program of the Export-Import Bank of the United States?

In a ________ or clearing-account arrangement, the delivery of products to the importer is compensated for by the exporter's buying back a certain amount of the product from the importer.

Which of the following is not a document that might be included in the documents for an international shipment under a letter of credit?

The Direct Loan Program is administered by the:

When products are shipped under a ______, the importer that accepts the draft is promising to pay the exporter at a specified future date.

The Working Capital Guarantee Program is administered by the:

Multinational Financial Management: An Overview

International Flow of Funds

International Financial Markets

Exchange Rate Determination

Currency Derivatives

Government Influence on Exchange Rates

International Arbitrage and Interest Rate Parity

Relationships among Inflation, Interest Rates, and Exchange Rates

Forecasting Exchange Rates

Measuring Exposure to Exchange Rate Fluctuations

Managing Transaction Exposure

Managing Economic Exposure and Translation Exposure

Direct Foreign Investment

Multinational Capital Budgeting

International Corporate Governance and Control

Country Risk Analysis

Multinational Cost of Capital and Capital Structure

Long-Term Debt Financing

Short-Term Financing

International Cash Management

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