Question

1. With a ____ arrangement, the exporter ships the products to the importer while still retaining actual title to themerchandise; the importer does not have to pay for the products until they have been sold to a third party.

Seleccione una:

a. consignment

b. draft

c. letter of credit

d. open account

2.

Which of the following is not a document that might be included in the documents for an international shipment under a letter of credit?

Seleccione una:

a. a barter notification

b. an ocean bill of lading

c. a bill of lading

d. an airway bill

e. a commercial invoice

3.The all-in rate charged on banker's acceptances is higher than the prime-based rate that a bank would charge a creditworthy borrower for a regular loan. true or false

4.

Under a letter of credit (L/C) arrangement, the _____ issues the L/C and sends it to the ____.

Seleccione una:

a. exporter's bank; exporter's government

b. importer's government; exporter's government

c. importer's bank; exporter's bank

d. exporter's government; importer's government

Answer 1

1. The option is A. i.e Consignment. An international consignment is and arrangement under which exports exports to foreign distributors who sells the goods to the third party. The foreign distributor pays for only those goods which are sold to third party.

2. The correct option is A. i.e A barter notification.

3. The given statement is true. Since Bankers acceptances are risky for banks hence they charge at higher rates.

4. The correct option is C. Under letter of credit the importer bank sends LOC to expoter that he will be paid for his goods.