1.

The Overseas Private Investment Corporation (OPIC) offers coverage against

Group of answer choices

losses due to labor strife.

losses due to expropriation, political violence, and currency inconvertibility.

the event the importer does not pay.

the devaluation of a country's currency.

2.

How can hedging increase the value of a firm?

Group of answer choices

by reducing its liabilities

by increasing its interest expense

by reducing its future income taxes

by increasing its headquarter expense

3.

What is the name of the company that purchases the accounts receivable of other firms?

Group of answer choices

shipping company

common carrier

insurance carrier

export factor

4.

A documentary credit reduces the uncertainty of a transaction by

Group of answer choices

creating guarantees of payment by the importer.

allowing extended repayment terms for the importer.

clearly establishing the acts that the exporter must carry out in order to receive payment.

providing insurance in case of loss or damage to the merchandise.

5.

The ________ is a trade organization that offers controls on the legal aspects of swaps.

Group of answer choices

Securities Exchange Commission

Options Clearing Corporation

Chicago Board Options Exchange

International Swap and Derivatives Association