Exam 19: Exports and Imports

A letter of credit is:

Which forms of countertrade do not involve the immediate use of money?

The ________ sends a purchase order to the ________. The ________ applies to his bank for a letter of credit.

If the 90-day B/A rates are 5%,determine the amount the exporter will receive if he holds the B/A until maturity.(Round your final value to nearest whole dollar.Assume 360 days in a year.)

If the market rate for 90-day B/As is 6.0 percent,calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.(Assume 360 days in a year)

A time draft is:

A banker's acceptance is:

Explain the major differences between international and domestic trade.

Which of the following services are NOT directly offered by EDC?

The time from acceptance to maturity on a banker's acceptance (B/A)is 90 days,the importing bank's acceptance commission is 1 percent and the B/A's discounted value at the time of acceptance is $1,000,000.If the 90-day B/A rates are 5%,determine the amount the exporter will receive if he holds the B/A until maturity.

Which forms of countertrade involve immediate use of money?

If the importing bank's acceptance commission is 1.25 percent,determine the amount the exporter will receive if he holds the B/A until maturity.(Assume 360 days in a year)

The term "forfaiting":

The term "countertrade" refers to:

International trade is more difficult and risky from the exporter's perspective than is domestic trade because:

The primary methods of payment for foreign trades,ranked in the order of most secure to least secure for the exporter is:

The purchase by a third party of one country's clearing agreement balance for hard currency which then in turn is sold is called:

The three basic documents needed in a foreign trade transaction are:

A form of barter in which the counterparties contract to purchase a certain amount of goods and services from one another is called:

A bill of lading is: