Question 1

When an exporter is dealing with a high credit risk customer,________ as a form of payment is most often used.

Accepted Answer

A)  draft 
B)  banker's acceptance 
C)  open account 
D)  cash in advance 
A)  draft 
B)  banker's acceptance 
C)  open account 
D)  cash in advance

Question 2

What are four different methods by which an exporter can accept payment from an importer? List them in increasing order of risk to the importer.

Accepted Answer

There are at least four different method

Question 3

From the importer's point of view the most attractive method of payment is

Accepted Answer

A)  open account. 
B)  time draft. 
C)  documentary collection. 
D)  documents against payment. 
A)  open account. 
B)  time draft. 
C)  documentary collection. 
D)  documents against payment.

Question 4

Firms that do a substantial amount of foreign trade would most often be interested 	to purchase a marine insurance policy that is ________.

Accepted Answer

A)  written with minimum payments 
B)  based on each transaction 
C)  open or floating 
D)  closed 
A)  written with minimum payments 
B)  based on each transaction 
C)  open or floating 
D)  closed

Question 5

The International Chamber of Commerce provides the following EXCEPT:

Accepted Answer

A)  writing export credit insurance. 
B)  promoting international trade and investment. 
C)  setting rules and standards for international trade. 
D)  arbitration and other forms of dispute resolution. 
A)  writing export credit insurance. 
B)  promoting international trade and investment. 
C)  setting rules and standards for international trade. 
D)  arbitration and other forms of dispute resolution.

Question 6

The Financial Credit Insurance Association offers two basic types of insurance polities to protect exporters against ________ and ________ risks.

Accepted Answer

A)  exchange rate, political 
B)  commercial, political 
C)  exchange rate, economic 
D)  commercial, logistics 
A)  exchange rate, political 
B)  commercial, political 
C)  exchange rate, economic 
D)  commercial, logistics

Question 7

The Export-Import Bank of the U.S.is the only independent U.S.government corporation whose sole purpose is to support ________ in their efforts to conduct international trade.

Accepted Answer

A)  U.S. exporters 
B)  U.S. importers 
C)  both U.S. exporters and importers 
D)  potential U.S. importers 
A)  U.S. exporters 
B)  U.S. importers 
C)  both U.S. exporters and importers 
D)  potential U.S. importers

Question 8

What is the purpose of marine insurance?

Accepted Answer

Merchandise that is shipped internationa

Question 9

What is the most popular way for an exporter to finance its accounts receivable?

Accepted Answer

The most popular way that an e

Question 10

A ________ is a request for payment that is created when an importer asks its bank to write a letter to an exporter indicating that the importer's bank will honor the request.

Accepted Answer

A)  draft 
B)  bill of lading 
C)  banker's acceptance 
D)  commercial invoice 
A)  draft 
B)  bill of lading 
C)  banker's acceptance 
D)  commercial invoice

Question 11

A documentary credit reduces the uncertainty of a transaction by

Accepted Answer

A)  creating guarantees of payment by the importer. 
B)  providing insurance in case of loss or damage to the merchandise. 
C)  allowing extended repayment terms for the importer. 
D)  clearly establishing the acts that the exporter must carry out in order to receive payment. 
A)  creating guarantees of payment by the importer. 
B)  providing insurance in case of loss or damage to the merchandise. 
C)  allowing extended repayment terms for the importer. 
D)  clearly establishing the acts that the exporter must carry out in order to receive payment.

Question 12

Which one of the following is NOT an advantage to exporters of documentary credits?

Accepted Answer

A)  It substitutes the creditworthiness of the bank for the importer. 
B)  It enhances the probability the exporter will experience delays due to exchange controls. 
C)  It requires strict adherence to the terms. 
D)  It clearly establishes the acts the exporter must perform in order to receive payment. 
A)  It substitutes the creditworthiness of the bank for the importer. 
B)  It enhances the probability the exporter will experience delays due to exchange controls. 
C)  It requires strict adherence to the terms. 
D)  It clearly establishes the acts the exporter must perform in order to receive payment.

When an exporter is dealing with a high credit risk customer,________ as a form of payment is most often used.

What are four different methods by which an exporter can accept payment from an importer? List them in increasing order of risk to the importer.

From the importer's point of view the most attractive method of payment is

Firms that do a substantial amount of foreign trade would most often be interested to purchase a marine insurance policy that is ________.

The International Chamber of Commerce provides the following EXCEPT:

The Financial Credit Insurance Association offers two basic types of insurance polities to protect exporters against and risks.

The Export-Import Bank of the U.S.is the only independent U.S.government corporation whose sole purpose is to support ________ in their efforts to conduct international trade.

What is the purpose of marine insurance?

What is the most popular way for an exporter to finance its accounts receivable?

A ________ is a request for payment that is created when an importer asks its bank to write a letter to an exporter indicating that the importer's bank will honor the request.

A documentary credit reduces the uncertainty of a transaction by

Which one of the following is NOT an advantage to exporters of documentary credits?

Globalization and the Multinational Corporation

The Foreign Exchange Market

Forward Markets and Transaction Exchange Risk

The Balance of Payments

Exchange Rate Systems

Interest Rate Parity

Speculation and Risk in the Foreign Exchange Market

Purchasing Power Parity and Real Exchange Rates

Measuring and Managing Real Exchange Risk

Exchange Rate Determination and Forecasting

International Debt Financing

International Equity Financing

International Capital Market Equilibrium

Country and Political Risk

International Capital Budgeting

Additional Topics in International Capital Budgeting

Risk Management and the Foreign Currency Hedging Decision

Managing Net Working Capital

Foreign Currency Futures and Options

Interest Rates and Foreign Currency Swaps

Filters

Exam 18: Financing International Trade

When an exporter is dealing with a high credit risk customer,________ as a form of payment is most often used.

What are four different methods by which an exporter can accept payment from an importer? List them in increasing order of risk to the importer.

From the importer's point of view the most attractive method of payment is

Firms that do a substantial amount of foreign trade would most often be interested to purchase a marine insurance policy that is ________.

The International Chamber of Commerce provides the following EXCEPT:

The Financial Credit Insurance Association offers two basic types of insurance polities to protect exporters against ________ and ________ risks.

The Export-Import Bank of the U.S.is the only independent U.S.government corporation whose sole purpose is to support ________ in their efforts to conduct international trade.

What is the purpose of marine insurance?

What is the most popular way for an exporter to finance its accounts receivable?

A ________ is a request for payment that is created when an importer asks its bank to write a letter to an exporter indicating that the importer's bank will honor the request.

A documentary credit reduces the uncertainty of a transaction by

Which one of the following is NOT an advantage to exporters of documentary credits?

Globalization and the Multinational Corporation

The Foreign Exchange Market

Forward Markets and Transaction Exchange Risk

The Balance of Payments

Exchange Rate Systems

Interest Rate Parity

Speculation and Risk in the Foreign Exchange Market

Purchasing Power Parity and Real Exchange Rates

Measuring and Managing Real Exchange Risk

Exchange Rate Determination and Forecasting

International Debt Financing

International Equity Financing

International Capital Market Equilibrium

Country and Political Risk

International Capital Budgeting

Additional Topics in International Capital Budgeting

Risk Management and the Foreign Currency Hedging Decision

Managing Net Working Capital

Foreign Currency Futures and Options

Interest Rates and Foreign Currency Swaps

Filters

The Financial Credit Insurance Association offers two basic types of insurance polities to protect exporters against and risks.