Finastra Assessment Test Finastra Assessment Trade Finance

Question 1

Which ICC ruleset governs the issuance and operation of Letters of Credit in international trade?

Accepted Answer

UCP 600

Answer

URDG 758

Answer

ISP98

Answer

eUCP 2.0

Question 2

In trade finance, what does 'usance' refer to in the context of a usance Letter of Credit?

Accepted Answer

The deferred payment period allowed before the buyer must pay

Answer

The currency denomination of the LC

Answer

The country where the LC is issued

Answer

The fee charged by the issuing bank

Question 3

Finastra's primary trade finance platform, used by banks to manage Letters of Credit, guarantees, and collections, is known as:

Accepted Answer

Fusion Trade Innovation

Answer

Fusion Invest

Answer

Fusion Risk

Answer

Fusion Loan IQ

Question 4

Under a Documentary Collection, which party instructs the remitting bank to release shipping documents to the buyer?

Accepted Answer

The exporter (principal)

Answer

The issuing bank

Answer

The confirming bank

Answer

The importer (drawee)

Question 5

Which Incoterm places the maximum responsibility on the seller, requiring them to deliver goods cleared for import at the buyer's named destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

EXW (Ex Works)

Answer

FOB (Free On Board)

Answer

CIF (Cost Insurance Freight)

Question 6

In supply chain finance, what is a 'reverse factoring' arrangement primarily designed to achieve?

Accepted Answer

Allow buyers to extend their payment terms while enabling suppliers to receive early payment

Answer

Transfer credit risk from the buyer to the supplier

Answer

Enable exporters to sell their receivables at a discount

Answer

Provide financing secured against warehouse inventory

Question 7

Which SWIFT message type is standardly used to issue a Letter of Credit from an issuing bank to an advising bank?

Accepted Answer

MT 700

Answer

MT 103

Answer

MT 202

Answer

MT 798