CGBP Trade Finance Online Test

F. The inability or unwillingness of the buyer to accept delivery of a shipment when it is ready is referred to as:


F. Fluctuation of exchange rates causing the price of products to plummet and causing the seller to

renegotiate pricing before shipment would be considered:


F. When purchasing or selling foreign currency at a spot rate, what best describes your adverse

(negative) foreign exchange risk?


F. Country risk =


F. The current market conditions indicate that in the next 90 days the US dollar is expected to decline in

value. The company is currently going through a very tight cash flow period and must monitor cash

closely. The company has an outstanding foreign currency payable that is due for payment in the next

60 days. The current spot rate is favorable to cover the payable due in 60 days. Which of the

following would you recommend based on the current condition of the company?


F. Which of the following best defines the balance of payments?


F. Companies that have operations overseas use transfer pricing to revalue their balance sheet creating a

“paper” gain or loss. Which best describes this type of exposure?


F. The main purpose of a credit report is to:


F. The average cost for an individual credit report is:


F. The method of payment that carries the greatest risk for the exporter is:


F. The method of payment that carries the greatest risk for the importer is:


F. When shipping under a letter of credit the exporter is guaranteed payment when:


F. A documentary collection differs from a letter of credit in that:


F. A common technique of transference of payment risk is:


F. Credit insurance can be purchased from:


F. A letter of credit reduces credit risk to the exporter by:


F. Political risk is best defined as the inability of a foreign customer to pay its debts in full and on time as a result of:


F. After the recent election in your buyer’s country the currency was drastically devalued, which will

make it difficult for your buyer to pay you on time. This would be considered:


F. Your new international customer has been in business for less than one year and is owned by an

individual with little industry experience. When evaluating your risk, this customer shows significant:


F. The UCP which defines the rights and obligations of banks and businesses involved in documentary transactions is considered:


F. The goal of the WTO is to help:


F. The SWIFT System is:


F. Funds remitted through a company check, drawn on a foreign bank will arrive in the seller’s account:


F. A confirmed letter of credit includes a:


F. Unless otherwise stated, all letters of credit are considered:


F. When funds arc transferred 60 days after sight without a draft, this is a(n) ____________letter of credit.


F. The cost for a documentary collection is less expensive than a letter of credit because the bank


F. Export credit insurance rates are based on:


F. The eUCP provides banks with guidelines to:


F. The standard messaging system used by banks around the world is known as:


F. The buyer has placed US $50,000.00 in an escrow account for the purchase of goods from the seller.

Which best describes this type of transaction.


F. 15,000 chickens are received in exchange for 25,000 umbrellas. ThIs type of transaction Is best

described us:


F. The SBA provides US exporters with:


F. The International Chamber of’ Commerce created the UCP600 as a:


F. Export-Import (Ex-Im) Bank of the U.S. country limitation schedule indicates the term and

availability for:


F. Having sufficient collateral on your balance sheet is the basis for most financing. Which of the

following is considered collateral?


F. Factors will discount foreign accounts receivable if they meet certain requirements. Which ot the

following best describes without recourse?


F. Which of the following product groups would be considered for medium- and long- term financing

through an Ex-Im Bank guarantee to a US exporter?























































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