CE CE Export Financing & Risk Management

Question 1

Which U.S. government agency provides export financing and loan guarantees to help American exporters compete globally?

Accepted Answer

Export-Import Bank of the United States (EXIM)

Answer

Federal Reserve Bank

Answer

Small Business Administration

Answer

U.S. Treasury Department

Question 2

What type of export financing arrangement allows a foreign buyer to defer payment while the U.S. exporter receives funds immediately through a bank?

Accepted Answer

Banker's acceptance

Answer

Open account

Answer

Cash in advance

Answer

Barter trade

Question 3

Which type of insurance protects U.S. exporters against non-payment by foreign buyers due to commercial or political risks?

Accepted Answer

Export credit insurance

Answer

Marine cargo insurance

Answer

Product liability insurance

Answer

General liability insurance

Question 4

What is the term for the risk that exchange rate fluctuations will negatively impact the value of an export transaction?

Accepted Answer

Foreign exchange (FX) risk

Answer

Country risk

Answer

Credit risk

Answer

Operational risk

Question 5

Which financial instrument allows an exporter to lock in an exchange rate for a future transaction, eliminating FX risk?

Accepted Answer

Forward exchange contract

Answer

Spot contract

Answer

Trade credit

Answer

Documentary collection

Question 6

Under a confirmed letter of credit, which party provides the additional payment guarantee beyond the issuing bank?

Accepted Answer

A bank in the exporter's country

Answer

The importer's government

Answer

The freight forwarder

Answer

The U.S. Chamber of Commerce