Practice Test Geeks(CES) Certified Export Specialist Practice Test
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CES Trade Finance & Payment Methods Flashcards

6 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CES Trade Finance & Payment Methods flashcards as text

  1. What is a confirmed letter of credit?

    Answer: An LC where a second bank (usually in the exporter's country) adds its own payment guarantee

    A confirmed LC has a second bank — typically in the exporter's country — add its confirmation, guaranteeing payment even if the issuing bank defaults.

  2. Under which Incoterms rule does the risk transfer from seller to buyer when the goods are placed aboard the ocean vessel at the port of origin?

    Answer: FOB

    Under FOB (Free on Board), risk transfers from seller to buyer the moment goods are loaded onto the nominated vessel at the named port of shipment.

  3. What is 'countertrade' in international export transactions?

    Answer: A reciprocal trade arrangement where the seller accepts goods or services instead of cash

    Countertrade encompasses barter, offset, and buyback arrangements where the exporter accepts non-cash compensation, such as goods or services, in exchange for exports.

  4. Which document issued by a bank confirms that a discrepant letter of credit presentation has been accepted by the applicant (buyer)?

    Answer: Waiver of discrepancies

    A waiver of discrepancies is a notice from the bank that the buyer has agreed to overlook specific document discrepancies so that payment can proceed.

  5. What is the SBA Export Working Capital Program (EWCP) designed to do?

    Answer: Guarantee loans made by commercial lenders to US exporters for export transactions

    The SBA EWCP provides loan guarantees (up to 90%) to encourage commercial lenders to extend working capital credit to eligible US exporters.

  6. In a D/A (Documents against Acceptance) collection, what does the buyer do to receive the shipping documents?

    Answer: Accepts a time draft, promising to pay at a future date

    Under D/A terms, the collecting bank releases documents to the buyer upon the buyer's acceptance of a time (usance) draft, creating a binding payment obligation.