Finastra Assessment Test Finastra Assessment Trade Finance 2

Question 1

A 'discrepancy' in trade finance refers to:

Accepted Answer

A document presented under an LC that does not conform to LC terms and conditions

Answer

A mismatch between the buyer's and seller's contract price

Answer

An error in the SWIFT message used to transmit payment

Answer

A difference in exchange rates between trade currencies

Question 2

What is the primary purpose of a Standby Letter of Credit (SBLC) in trade finance?

Accepted Answer

To function as a guarantee that the applicant will fulfill contractual obligations, with payment triggered only on default

Answer

To serve as the primary payment mechanism for goods in international trade

Answer

To replace a bank guarantee in jurisdictions where guarantees are not permitted

Answer

To provide short-term working capital directly to exporters

Question 3

Under UCP 600, banks have how many banking days to examine documents presented under a Letter of Credit and determine compliance?

Accepted Answer

5 banking days

Answer

3 banking days

Answer

7 banking days

Answer

10 banking days

Question 4

In trade finance, 'forfaiting' is best described as:

Accepted Answer

The non-recourse purchase of medium-to-long-term trade receivables at a discount by a forfaiter

Answer

A short-term revolving credit facility for exporters

Answer

A government export credit agency guarantee scheme

Answer

A method of financing pre-shipment production costs

Question 5

Which Finastra solution provides banks with open API connectivity to integrate trade finance workflows with corporate ERP systems and third-party platforms?

Accepted Answer

FusionFabric.cloud

Answer

Fusion Digital Banking

Answer

Fusion Risk Manager

Answer

Fusion Mortgages

Question 6

A 'transferable Letter of Credit' allows:

Accepted Answer

The beneficiary to transfer all or part of the credit to one or more secondary beneficiaries

Answer

The issuing bank to transfer LC obligations to a confirming bank

Answer

The buyer to transfer payment responsibility to a third-party guarantor

Answer

The advising bank to negotiate documents on behalf of a confirming bank

Question 7

In the context of trade finance compliance, which international framework is most directly relevant to screening trade transactions for sanctions and illicit finance?

Accepted Answer

FATF Recommendations and trade-based money laundering (TBML) guidance

Answer

Basel III capital adequacy rules

Answer

ISO 20022 messaging standards

Answer

IFRS 9 financial instrument classification