1.Which receivable financing method involves an exporter to have a financial institution discount or purchase a bank avalized draft or promissory note?

a.

forfaiting

b.

factoring

c.

issuing of a standby credit

d.

drawing on a bank credit line of the firm

2.

Under CIF terms there are are often disputes about unloading or discharging costs. How should an exporter prevent such disputes?

a.

Specify in the proforma invoice that all unloading charges are for the importer's account.

b.

Specify that all unloading charges are for the importer's account in the contract of sale.

c.

Clarify to the freight forwarder that all unloading charges are for the importer's account within the exporter's instructions to the freight forwarder.

d.

All of the above

3.

When a currency is overvalued in relation to Purchasing Power Parity, it is expected to face

a.

devaluations to reflect purchasing power parity

b.

cheaper imported goods

c.

more competitive markets

d.

an increase in the value of the purchasing power parity