1. Which is not an advantage of trade finance

A) risk mitigation

B) timely payment

C) eliminates commercial risk

D) build relationships

2. Which source of information will not eliminate county's risk

A) export agencies

B) banks

C) information from the internet

D) company website

3. Which is not an advantage of the letter of credit

A) risk of default by the issuing bank

B) time bound

C) possibility of misuse

D) all of the above

4. As an exporter you have some concerns regarding the stability of the importers economy and bank which of the following letter of credit would be most applicable A). back to back documentary letters of credit B) red clause back documentary letters of credit C) revolving documentary letters of credit D) none of the above

5. Back-to Back documentary letter of credit is very risky for

A) The intermediary bank issuing the second letter of credit

B) The broker

C) Exporter

D) The importer

6. Which of the following stimulates international trade?

A) Tastes

B) Per capita income

C) Technological change

D) All of the above

7. A surplus budget can

A) lower taxes

B) decrease borrowing

C) can lower prices on consumer goods

D) all of the above

8. Which is an example of commercial risk

A) importer is not willing or unable to pay

B) restriction on imports

C) restrictions on export

D) all of the above

9. Export credit insurance does not cover which of the following risk

A) economic

B) commercial

C) default

D) political

10. Trade finance instruments are designed to help

A) the issuing bank to ensure accurate and timely payment

B) importers and exporters

C) the advising bank

D) all of the above