Reference no: EM131901886

Question 1

1.A confirmed letter of credit

Select one:

a. eliminates sovereign risk for the seller

b. is like a registered letter

c. covers foreign exchange exposure

d. none of the above

Question 2

a Forfait transaction

Select one:

a. is a letter of credit sale

b. is export credit insurance

c. is a sale without recourse

d. is a draf

Question 3

Changes in future operating cash flows caused by exchange rate movements is called

Select one:

a. natural hedging

b. transaction exposure

c. operating exposure

d. none of the above

Question 4

Countertrade is

Select one:

a. simple barter

b. clearing arrangements

c. switch trading

d. all of the above

Question 5

EXIM

Select one:

a. lends to foreign purchasers of U.S. goods

b. guarantees foreign loans for the purchase of U.S. goods

c. takes foreign deposits for Euro Dollar loans

d. none of the above

Question 6

In the United States, export accounts receivable insurance is provided by the

Select one:

a. commercial banks

b. EXIM

c. IMF

d. WTO

Question 7

Tariff barriers are typically put into place

Select one:

a. to protect local or "infant industries

b. as a profit making 'scheme"

c. to stop cross border traffic

d. none of the above

Question 8

The accepting entity in a trade acceptance is a

Select one:

a. bank

b. commercial company

c. A government entity

d. EXIM

Question 9

What can multinational firms do to transfer funds out of countries having exchange or remittance restrictions commonly known as "Blocked Funds"

Select one:

a. create a "Parallel Loan" wherein loans are funneled through a separate intermediary

b. increase sales taxes

c. use forward contracts

d. unilateral sanctions

Question 10

Which of the following is a reason why Commercial Banks can facilitate International Trade

Select one:

a. the exporter may not wish to accept credit risk of the importer

b. the government may impose exchange controls which prevent payment by the importer to the exporter

c. the exporter may need financing until payment for the goods is received

d. all the above