1. Open account means the following:

   		A. Exporter is paid by the importer upon receipt of goods or at an arranged future date
   		B. The exporter is financing the importer.
   		C. The importer bears all risk of non-payment.
   		D. All of the above are correct.
   		E. Only a and b are correct

2 points

QUESTION 8

1. You work for a large importing company and are negotiating a long-term contract with an exporter abroad. To mitigate the risk of non-compliance by the exporter, your boss guides you to require them to post 20% of the contract value beforehand, and she specifies that she would rather not have to deal with a foreign bank. This is called a:

   		C. Retention guarantee
   		D. Surety bond
   		B. Performance guarantee
   		A. Bid guarantee