Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

A time draft that is issued by a firm and guaranteed by a bank is called a banker's acceptance.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  bank. 
B)  importer. 
C)  exporter. 
D)  None of these are correct.

Question 4

With a(n) ____ arrangement, the exporter ships the products to the importer while still retaining actual title to the merchandise; the importer does not have to pay for the products until they have been sold to a third party.

Accepted Answer

A)  letter of credit 
B)  open account 
C)  draft 
D)  consignment

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

An importer always has the option to cancel an irrevocable letter of credit.

Accepted Answer

A) True 
 B)False

Exam 19: Financing International Trade

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 time draft that is issued by a firm and guaranteed by a bank is called a banker's acceptance.

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

With a(n) ____ arrangement, the exporter ships the products to the importer while still retaining actual title to the merchandise; the importer does not have to pay for the products until they have been sold to a third party.

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

An importer always has the option to cancel an irrevocable letter of credit.