Question 1

Countertrade transactions

Accepted Answer

A) are included in official trade statistics. 
B) are NOT included in official trade statistics. 
C) reduce trade imbalances and trade deficits. 
D) both a and c 
A) are included in official trade statistics. 
B) are NOT included in official trade statistics. 
C) reduce trade imbalances and trade deficits. 
D) both a and c

Question 2

If the importing bank's acceptance commission is 1.25 percent,determine the amount the exporter will receive if he holds the B/A until maturity.

Accepted Answer

A) $2,945,625 
B) $2,990,625 
C) $2,906,250 
D) $3,009,375 
A) $2,945,625 
B) $2,990,625 
C) $2,906,250 
D) $3,009,375

Question 3

Determine the amount the exporter will receive if he holds the B/A until maturity.

Accepted Answer

The answer of Determine the amount the exporter will receive...

Question 4

Some Generalizations about Countertrade
The time from acceptance to maturity on a $500,000 banker's acceptance is 270 days.
The importing bank's acceptance commission is 0.75 percent and that the market rate for 270-day B/As is 4 percent.
-Determine the bond equivalent yield the importer's bank will earn from discounting the B/A with the exporter.

Accepted Answer

If the exporter holds the B/A to maturit

Question 5

Some Generalizations about Countertrade
The time from acceptance to maturity on a $50,000 banker's acceptance is 180 days.
The importing bank's acceptance commission is 2.50 percent and that the market rate for 180-day B/As is 2 percent.
-If the exporter's opportunity cost of capital is 11 percent,should he discount the B/A or hold it to maturity?

Accepted Answer

If his cost of funds > 2.05% compounded

Question 6

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days.Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.

Accepted Answer

A) $9,993,750 
B) $9,999,375 
C) $9,975,000 
D) $9,009,375 
A) $9,993,750 
B) $9,999,375 
C) $9,975,000 
D) $9,009,375

Question 7

Through its Export Credit Insurance Program,Eximbank helps U.S.exporters develop and expand their overseas sales by

Accepted Answer

A) protecting them against loss should a foreign buyer default. 
B) guaranteeing the loans made by private financial institutions to foreign importers. 
C) providing liquidity via the purchase of notes issued by Eximbank to finance the loans. 
D) none of the above 
A) protecting them against loss should a foreign buyer default. 
B) guaranteeing the loans made by private financial institutions to foreign importers. 
C) providing liquidity via the purchase of notes issued by Eximbank to finance the loans. 
D) none of the above

Question 8

Some Generalizations about Countertrade
The time from acceptance to maturity on a $50,000 banker's acceptance is 180 days.
The importing bank's acceptance commission is 2.50 percent and that the market rate for 180-day B/As is 2 percent.
-Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.

Accepted Answer

The answer of Some Generalizations about Countertrade
The time from acceptance...

Question 9

Countertrade transactions are

Accepted Answer

A) becoming obsolete as a means of conducting international trade transactions. 
B) gaining renewed prominence as a means of conducting international trade transactions. 
C) strictly a form of barter. 
D) none of the above 
A) becoming obsolete as a means of conducting international trade transactions. 
B) gaining renewed prominence as a means of conducting international trade transactions. 
C) strictly a form of barter. 
D) none of the above

Question 10

Some Generalizations about Countertrade
The time from acceptance to maturity on a $30,000,000 banker's acceptance is 45 days.
The importing bank's acceptance commission is 1.5 percent and that the market rate for 45-day B/As is 4½ percent.
-Determine the bond equivalent yield the importer's bank will earn from discounting the B/A with the exporter.

Accepted Answer

If the exporter holds the B/A to maturit

Question 11

The primary methods of payment for foreign trades,ranked in the order of most secure to least secure for the exporter is

Accepted Answer

A) open account, consignment, letter of credit/time draft, and cash in advance. 
B) consignment, letter of credit/time draft, cash in advance, and open account. 
C) cash in advance, letter of credit/ time draft, consignment, and open account. 
D) cash in advance, letter of credit/ time draft, open account, and consignment. 
A) open account, consignment, letter of credit/time draft, and cash in advance. 
B) consignment, letter of credit/time draft, cash in advance, and open account. 
C) cash in advance, letter of credit/ time draft, consignment, and open account. 
D) cash in advance, letter of credit/ time draft, open account, and consignment.

Question 12

The term "forfaiting"

Accepted Answer

A) means relinquishing, waiving, yielding, and penalty. 
B) is a type of medium-term trade financing used to finance the sale of capital goods. 
C) involves the sale of promissory notes signed by the importer in favor of the exporter, who might sell the notes at a discount from face value. 
D) both b and c 
A) means relinquishing, waiving, yielding, and penalty. 
B) is a type of medium-term trade financing used to finance the sale of capital goods. 
C) involves the sale of promissory notes signed by the importer in favor of the exporter, who might sell the notes at a discount from face value. 
D) both b and c

Question 13

Some Generalizations about Countertrade
The time from acceptance to maturity on a $300,000 banker's acceptance is 30 days.
The importing bank's acceptance commission is 3 percent and that the market rate for 30-day B/As is 4 percent.
-Calculate the amount the banker will receive if the exporter discounts the B/A with the importer's bank.

Accepted Answer

The answer of Some Generalizations about Countertrade
The time from acceptance...

Question 14

Assume the time from acceptance to maturity on a $4,000,000 banker's acceptance is 180 days.Further assume that the importing bank's acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.

Accepted Answer

A) $3,993,750 
B) $3,915,000 
C) $3,975,000 
D) $3,009,375 
A) $3,993,750 
B) $3,915,000 
C) $3,975,000 
D) $3,009,375

Question 15

A typical foreign trade transaction requires three basic documents

Accepted Answer

A) letter of credit, bill of lading, and shipping documents. 
B) time draft, banker's acceptance, and bill of lading. 
C) letter of credit, time draft, and bill of lading. 
D) letter of credit, banker's acceptance, and bill of lading. 
A) letter of credit, bill of lading, and shipping documents. 
B) time draft, banker's acceptance, and bill of lading. 
C) letter of credit, time draft, and bill of lading. 
D) letter of credit, banker's acceptance, and bill of lading.

Question 16

Some Generalizations about Countertrade
The time from acceptance to maturity on a $1,000,000 banker's acceptance is 60 days.
The importing bank's acceptance commission is 1.00 percent and that the market rate for 60-day B/As is 5 percent.
-Determine the amount the exporter will receive if he holds the B/A until maturity.

Accepted Answer

The answer of Some Generalizations about Countertrade
The time from acceptance...

Question 17

In a forfaiting transaction,the forfait

Accepted Answer

A) buys the notes at a discount from face value from the importer. 
B) buys the notes at a discount from face value from the exporter. 
C) redeems the notes at a face value to the exporter. 
D) none of the above 
A) buys the notes at a discount from face value from the importer. 
B) buys the notes at a discount from face value from the exporter. 
C) redeems the notes at a face value to the exporter. 
D) none of the above

Question 18

Some Generalizations about Countertrade
The time from acceptance to maturity on a $300,000 banker's acceptance is 30 days.
The importing bank's acceptance commission is 3 percent and that the market rate for 30-day B/As is 4 percent.
-If the exporter's opportunity cost of capital is 11 percent,should he discount the B/A or hold it to maturity?

Accepted Answer

If his cost of funds > 4.07% compounded

Question 19

Some Generalizations about Countertrade
The time from acceptance to maturity on a $50,000 banker's acceptance is 180 days.
The importing bank's acceptance commission is 2.50 percent and that the market rate for 180-day B/As is 2 percent.
-Determine the amount the exporter will receive if he holds the B/A until maturity.

Accepted Answer

The answer of Some Generalizations about Countertrade
The time from acceptance...

Question 20

Some Generalizations about Countertrade
The time from acceptance to maturity on a $500,000 banker's acceptance is 270 days.
The importing bank's acceptance commission is 0.75 percent and that the market rate for 270-day B/As is 4 percent.
-If the exporter's opportunity cost of capital is 11 percent,should he discount the B/A or hold it to maturity?

Accepted Answer

If his cost of funds > 4.08% compounded

Countertrade transactions

If the importing bank's acceptance commission is 1.25 percent,determine the amount the exporter will receive if he holds the B/A until maturity.

Determine the amount the exporter will receive if he holds the B/A until maturity.

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days.Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.

Through its Export Credit Insurance Program,Eximbank helps U.S.exporters develop and expand their overseas sales by

Countertrade transactions are

The primary methods of payment for foreign trades,ranked in the order of most secure to least secure for the exporter is

The term "forfaiting"

A typical foreign trade transaction requires three basic documents

In a forfaiting transaction,the forfait

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

Corporate Governance Around the World

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

Futures and Options on Foreign Exchange

Management of Transaction Exposure

Management of Economic Exposure

Management of Translation Exposure

International Banking and Money Market

International Bond Market

International Equity Markets

Interest Rate and Currency Swaps

International Portfolio Investment

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

International Tax Environment and Transfer Pricing

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Exam 20: International Trade Finance

Countertrade transactions

If the importing bank's acceptance commission is 1.25 percent,determine the amount the exporter will receive if he holds the B/A until maturity.

Determine the amount the exporter will receive if he holds the B/A until maturity.

Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days.Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.

Through its Export Credit Insurance Program,Eximbank helps U.S.exporters develop and expand their overseas sales by

Countertrade transactions are

The primary methods of payment for foreign trades,ranked in the order of most secure to least secure for the exporter is

The term "forfaiting"

A typical foreign trade transaction requires three basic documents

In a forfaiting transaction,the forfait

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

Corporate Governance Around the World

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

Futures and Options on Foreign Exchange

Management of Transaction Exposure

Management of Economic Exposure

Management of Translation Exposure

International Banking and Money Market

International Bond Market

International Equity Markets

Interest Rate and Currency Swaps

International Portfolio Investment

Foreign Direct Investment and Cross-Border Acquisitions

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

International Tax Environment and Transfer Pricing

Filters