1. International trade payment methods Which of the following is true of open account transactions? O Open account transactions cause no risk to the exporter. The products are shipped by the exporter before payment from the importer. Open account transactions cause a high level of risk to the importer. Payment is made to the exporter upon proof that the products have been shipped. 4. Finance methods for trade II Which of the following is true about countertrade? Counter trade does not include barter A countertrade is a trade in which payment is made after goods are already shipped. In a countertrade transaction, the sale of products from one country is linked to the purchase of products from that same country, O Counter trade has drastically declined in popularity in recent years, 5. Agencies that facilitate international trade Which of the following is true about the Export-Import (Ex-Im Bank) Bank of the United States? The current goal of the Ex-Im Bank is to facilitate the export of American products. The Ex-Im Bank is dependent on the U.S. government. The current goal of the Ex-Im Bank is to facilitate trade between the U.S. and the Soviet Union. The Ex-Im Bank does not offer bank insurance. 3. Banker's acceptances Which of the following parties primarily benefit from a banker's acceptance? Check all that apply. The exporter's bank The Importer's bank The importer The exporter Suppose an importer uses a banker's acceptance in a trade. The amount of the banker's acceptance is $1,000,000, with a banker's acceptance (B/A) rate of 7.50%. Alternatively, instead of using a banker's acceptance, the importer could use a prime-rate-based loan for the same amount. Both the loan and the banker's acceptance would have a term of one half of a year. Complete the last row of the table, niling in the Interest cost of the loan and the banker's acceptance. Loan Acceptance Amount $1,000,000 $1,000,000 Term 0.5 Years 0.5 Years Rate Prime + 1.50% B/A Rate + 1.50% 9.50% + 1.50% - 11.00% 7.50% + 1.50% -9.00% Interest Cost S The interest cost is higher for the