International Banking and Trade Finance

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Which of the following is a commonly used financial instrument in international trade to mitigate the risk of payment?

Letter of Credit

Credit Default Swap

Promissory Note

Commercial Paper

What is the primary purpose of Export Credit Insurance?

To protect the exporter from non-payment risks by the importer

To provide working capital to exporters

To facilitate foreign direct investment

To ensure foreign exchange rate stability

Which of the following organizations facilitates international trade by offering guarantees and credit to exporters?

World Trade Organization (WTO)

Export-Import Bank (EXIM Bank)

International Monetary Fund (IMF)

United Nations Conference on Trade and Development (UNCTAD)

Which term refers to a financial arrangement where a bank provides immediate payment to the exporter by purchasing the exporter's receivables?

Factoring

Forfaiting

Leasing

Swapping

In international trade, who issues a Bill of Lading?

Exporter

Importer

Shipping Company

Bank