Question
I need help with more practice problems Incoterms are generally divided into which following categories? A. Importer vs. exporter B. Freight vs. service C. Insured
I need help with more practice problems
Incoterms are generally divided into which following categories?
A. | Importer vs. exporter | |
B. | Freight vs. service | |
C. | Insured vs. non-insured | |
D. | Any transport mode vs. ocean transport mode |
2. A misuse of Incoterm rules is common due to
A. | Government restrictions | |
B. | Language translaton issues | |
C. | Confusion with domestic terms | |
D. | Differences between importer and exporter policies |
3.If an exporter chooses Incoterms properly, it can
A. | Avoid litigation | |
B. | Reduce its shipping costs | |
C. | Increase its profit | |
D. | Keep level market share |
In a forward hedge strategy
A. | the exporter locks into a contract for exchanging the due amount with a bank at the forward rate | |
B. | the exporter purchases an option to buy the due amount at a contract rate or exchange at the spot rate | |
C. | the exporter bills the importer using the forward exchange rate | |
D. | None of these |
Theory holds that forward currency exchange rates are
A. | Good predictors of current forward currency rates | |
B. | Good predictors of future spot interest rates | |
C. | Good predictors of current spot currency rates | |
D. | Good predictors of future spot currency rates |
In a money market hedge strategy,
A. | the exporter purchases an option to sell the due amount at a contract rate or exchange at the spot rate | |
B. | the exporter locks into contract for exchanging the due amount with a bank at the forward rate | |
C. | the exporter iInvests the present value of the amount, then withdraws when they have to pay the importer | |
D. | the exporter borrows the present value of the due amount, then pays off the bank when they get paid by the customer |
In general, transaction risks are usually minimal for
A. | the party who is in the least risk country | |
B. | the party whose is receiving paid insurance coverage | |
C. | the party belonging to the country of the currency of the transaction | |
D. | the party who has the least business risk |
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