IT's Time For International Trade Quiz

12 Questions | Total Attempts: 142

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International Trade Quizzes & Trivia

Quiz to help mi madre along.


Questions and Answers
  • 1. 
    Transaction Risk occur when....
    • A. 

      You must make a payment in a foreign currency in the future.

    • B. 

      You must recieve a payment in a foreign currency in the future.

    • C. 

      When you dont have enough money in your account

    • D. 

      A and b

    • E. 

      All the above

  • 2. 
    Hedging is Protecting one self from losses due to
    • A. 

      Foreign exchange rate fluctuations.

    • B. 

      Bounced checks

    • C. 

      Risky Investments

    • D. 

      All the above.

  • 3. 
    What are the three steps incredit or money market hedge...
    • A. 

      Borrow foreign money to be recieved from your piggy bank. Exchange money into U.S dollars at spot rate. Keep bank loan when payment is received from foreign buyer.

    • B. 

      Borrow foreign money to be recieved from a bank. Exchange money into U.S dollars at spot rate. Repay bank loan when payment is received from foreign buyer.

    • C. 

      Make them up as you go along the way.

  • 4. 
    If the euro _________ against the dollar, you let the option expire and change euros into dollars at the spot rate.
    • A. 

      Strengthens

    • B. 

      Weakens

    • C. 

      Stays the same

  • 5. 
    What are the 3 steps in banker's acceptance:
    • A. 

      B/A issued as a time graph. Time graph is accepted by by the seller's bank turning it into a B/A. B/A is cashed at a discount at your local bank.

    • B. 

      B/A issued as a time draft. Time draft is accepted by by the seller's bank turning it into a B/A. B/A is cashed at a discount at another bank.

  • 6. 
    If the euro ___________, you exercise the option and turn euros into dollars at the option exchange rate.
    • A. 

      Strenghtens

    • B. 

      Weakens

    • C. 

      Stays the same

  • 7. 
    What is a swap?
    • A. 

      A trade in assets or liabilities in different currencies.

    • B. 

      A trade in interest rate structures to lesson risks or costs.

    • C. 

      All the above/

  • 8. 
    A confirmed letter of credit is issued by
    • A. 

      Your bank

    • B. 

      The buyers bank

    • C. 

      The bank that is closest to you

    • D. 

      All the above.

  • 9. 
    Commercial invoice is a _________ document.
    • A. 

      Public

    • B. 

      Private

    • C. 

      Collection

  • 10. 
    When is the Pro Forma invoice issued..
    • A. 

      Whenever you can pay for it

    • B. 

      When the bank approve it

    • C. 

      Before the L/C is sent

    • D. 

      All the above

  • 11. 
    A bill of lading is given to you by
    • A. 

      A police officer

    • B. 

      A bank official

    • C. 

      The shipping company for goods recieved.

  • 12. 
    What document is needed to get goods out of the country?
    • A. 

      A general export license.

    • B. 

      A shippers export declaration

    • C. 

      Money

    • D. 

      A and b

    • E. 

      All the above.

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