QUESTION Repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports is guaranteed by the: A. United Nations. B. Central Bank. C. World Bank. D. Ex-Im Bank. E. Export Credit Insurance Association. ANSWER D
Date: September 3rd, 2020
QUESTION Which of the following is true of barter as a countertrade arrangement? A. It is a very complex arrangement. B. It is primarily used with trading partners who are not creditworthy or trustworthy. C. It involves cash transactions. D. When goods are exchanged simultaneously, one partner ends up financing the other. E. It is […]
Date: September 3rd, 2020
QUESTION Financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries is provided by the: A. sogo shosha. B. World Bank. C. Overseas Commercial Service. D. Ex-Im Bank. E. Export Credit Insurance Association. ANSWER D
Date: September 3rd, 2020
QUESTION The direct exchange of goods and/or services between two parties without a cash transaction is referred to as: A. switch trading. B. counterpurchase. C. barter. D. offset. E. buyback. ANSWER C
Date: September 3rd, 2020
QUESTION The bank that has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S. exports is called the: A. Department of Commerce. B. World Bank. C. Ex-Im Bank. D. Bank of New York. E. Small Business Administration. ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following is the most restrictive countertrade arrangement? A. Counterpurchase B. Offset C. Barter D. Switch trading E. Buyback ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following is the first step in a typical international trade transaction? A. The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms. B. The importer applies to a trusted third party (usually a bank) for a letter of credit to be […]
Date: September 3rd, 2020
QUESTION Which of the following is true of counterpurchase? A. It is the most restrictive countertrade arrangement. B. It is a reciprocal buying agreement. C. It is the simplest countertrade arrangement. D. It uses a specialized third-party trading house. E. It is the direct exchange of goods without a cash transaction. ANSWER B
Date: September 3rd, 2020
QUESTION When a bill of lading is used to obtain payment or a written promise of payment before the merchandise is released to the importer, it serves as a: A. document of title. B. contract. C. receipt. D. time draft. E. collateral. ANSWER A
Date: September 3rd, 2020
QUESTION The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the: A. Federal Mediation and Conciliation Service. B. U.S. Department of Commerce. C. Export-Import Bank. D. International Trade Administration. E. Ministry of International Trade and Industry. ANSWER C
Date: September 3rd, 2020
