to International Payments and Settlements 37 Chapter 2 Introduction to International Payments open account Boods to a customer abroad on FOB terms and on CIF terms. Who is C banker's draft (4) An exporter sells goods to a custom responsible for the freight charges in cach? A. Importer, exporter. C. Importer, importer B. Exporter, importer Exporter, exporter Foreign trade can be conducted on the following terms except for A. open account B. documentary collection C. documentary credit D. public bonds (6) A bank gets to know its exact position of funds by A. reflecting the credit balance B. examining the mirror account C. consulting a foreign bank . D. checking the nostro account I Bank of China instructs Bank of America to pay a sum of US$ 1.000,000.00 to Midland, its nostro account will be A. credited B. debited C increased D. decreased (8) Statements of balance of international payment don't include A. current account B. capital account C. balancing account D. visible account (9) Cash settlement is effected by shipping taking the form of coins, bars or bullions. A. precious metals B. gold C. silver D. notes (10) International cash settlement has the following disadvantages except A. expensive B. safe C. risky D. time-consuming