Exam 19: Financing International Trade

A ____ provides a summary of freight charges and conveys title to the merchandise.

In ____, the exporter sells accounts receivable without recourse.

A bill of exchange requesting the bank to pay the face amount upon presentation of documents is a:

In a countertrade transaction, banks on both ends act as intermediaries in the processing of shipping documents and the collection of payment.

With ____, a bank purchases a receivable without recourse to the exporter.

Under a letter of credit, the exporter will not ship the goods until the buyer has remitted payment to the exporter.

The Overseas Private Investment Corporation (OPIC) is owned by a consortium of commercial banks and industrial companies; it cooperates closely with the Export-Import Bank.

A bill of exchange requesting the bank to pay the face amount at a future date is a:

All types of foreign trade transactions in which the sale of goods to one country is linked to the purchase or exchange of goods from that same country are called countertrade.

With ____, the exporter ships the goods to the importer while still retaining actual title to the merchandise.

According to the text, international trade activity has generally ____ over time. This should cause the popularity of trade finance techniques to ____ over time.

The ____ is a self-sustaining federal agency responsible for insuring direct U.S. investments in foreign countries against the risk of currency inconvertibility, expropriation, and other political risks.

The Working Capital Guarantee Program and the Medium-term Guarantee Program are offered by the:

A banker's acceptance is a draft drawn on and accepted by a(n) ____.

The payment method that affords the supplier the greatest degree of protection is the prepayment method.

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

The all-in-rate a bank charges its customer(s) for accepting drafts includes both the discount rate and the acceptance commission.

The term counterpurchase denotes the exchange of goods between two parties under two distinct contracts expressed in monetary terms.

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

The commission earned by the bank for accepting a draft is reflected in the all-in-rate.