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 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 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 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 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 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 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
QUESTION In the United States, export credit insurance is provided by the: A. Export-Import Bank. B. Bank of New York. C. Foreign Credit Insurance Association. D. Federal Deposit Insurance Corporation. E. Federal Reserve Bank. ANSWER C
Date: September 3rd, 2020
QUESTION An export credit insurance is necessary when the exporter: A. is exposed to the risk that the importer may default on payment. B. is dealing in a country that has a nonconvertible currency. C. is unable to obtain any pre-export financing. D. has received a letter of credit from the importer’s bank. E. has […]
Date: September 3rd, 2020
