1/In a transaction with payment in advance:

		A. The importer is paid prior to shipment of goods
		B. The importer is financing the exporter
		C. The exporter has no payment risks
		D. All of the above are correct
		E. Only b and c are correct

2/In a transaction with an unconfirmed sight letter of credit:

		A. The risks to the exporter include the inability of the confirming bank to honor the documentary credit
		B. The risks to the exporter include the inability of the issuing bank to honor the documentary credit
		C. The risks to the exporter include the inability of the importer to honor the documentary credit
		D. A sight letter of credit is the same as a term letter of credit

3/Why are cross-currency swaps said to be made on a blind basis?

		A. Because the swappers are not known to domestic banks, which are thus blind to them
		B. Because the swappers are not known to foreign banks, which are thus blind to them
		C. Because the MNE is too blind to be using matching currency cash flow when it should
		D. Because neither company knows their counterpart

4When managing operating exposure through matching currency cash flows, which of the following is correct?

		A. The MNE matches home country revenue and expenses
		B. The MNE matches foreign country revenue and expenses
		C. When an export contract provides foreign currency accounts receivable, the company seeks out suppliers in the same foreign country, so the currency risk is reduced or eliminated
		D. Both b and c are correct

5/ Which of the following statements regarding Incoterms is incorrect?

		A. Incoterms define the mode of transport
		B. Incoterms define the obligations related to insuring the shipment
		C. Incoterms define the point at which the liability related to the shipment passes from importer to exporter.
		D. Incoterms define the timing and form of payment
		E. Only a and c are correct.