Quiz-3 (2)

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School

Centennial College *

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702

Subject

Economics

Date

Feb 20, 2024

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docx

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6

Uploaded by EarlKomodoDragonMaster808

Question 1 (1 point) Saved Listen Your client wants to export to a new geographical area. What possible payment risk must be considered first? Question 1 options: Failure of the buyer to honor his contractual obligations The risk of the date of cargo readiness The risk of loss due to economic, social, legal and political conditions The risk of loss or damage to goods in transit Question 2 (1 point) Saved Listen What is the role of a freight forwarder with an international payment transaction? Question 2 options: To advise on payment risks in international business To advise on sources of credit To negotiate international payments on behalf of the client To assist in negotiating sales contracts Question 3 (1 point) Saved Listen When a product is shipped to the buyer without prior payment or without any bank involvement, this is an example of: Question 3 options: documentary collection open account letter of credit payment in advance- wrong
Question 4 (1 point) Saved Listen The seller has presented the documents correctly but the buyer is not paying the draft in a documentary collection (dc) transaction. If payment isn't forthcoming the bank is responsible to: Question 4 options: advise the buyer and remit payment to the seller consult URC522 to determine what to do remit payment and debit the buyers account advise the buyer that they must pay within 30 days Question 5 (1 point) Saved Listen This payment option is advantageous to the buyer but puts the seller at maximum risk: Question 5 options: advance payment open account documentary collection documentary letter of credit Question 6 (1 point) Saved Listen Which document would you (as a buyer), or the bank (under d/p), would you check to see if delivery conforms, in a CIF contract? Question 6 options: The Inspection Certificate
the Certificate of Origin The Bill of Lading The Insurance Certificate The Commercial Invoice Question 7 (1 point) Saved Listen When documentary collection is the agreed method of payment, and it is agreed that goods are sold documents against payment (D/P), the exporter's risk is of non-payment is Question 7 options: high total low zero Question 8 (1 point) Saved Listen A contract using a documentary collection with the term D/P (documents against payment) means that the payment to the seller will ____________ upon presentation of the documents and the draft. Question 8 options: be made at maturity not be made at all be made in 10 days be made immediately Question 9 (1 point) Saved Listen
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