Brainstorming Trade Finance

The purpose of the Down Payment or Advance Payment Guarantee is to guarantees the buyer who has agreed to pay (…) his supplier against non-commitment with the seller's obligations. It also makes it easier for the exporter to negotiate installments for the entry into force of contracts and during their execution.

• Wrong

• Right

Please select the right order regarding contractual stages :

• 1/Performance, 2/Retention, 3/Bid, 4/Advance payment.

• 1/Request for proposal, 2/Tender, 3/Execution, 4/PAC, 5/FAC.

• 1/Tender bond, 2/Downpayment bond, 3/Performance bond.

• 1/PAC, 2/Execution, 3/FAC, 4/Tender, 5/Request for proposal.

The letter of credit (L/C) [ also called the documentary credit] is, by default:

• a) Revocable at any time

• b) No correct answer

• c) Irrevocable and confirmed

• d) Irrevocable

S.W.I.F.T means :

• Society Worldwide Inter-Funds Transfer

• Society Worldwide International Freight and Transportation

• Society Worldwide Interbank Financial Telecommunication

The former COFACE (now BPI France Assurance Export), founded in 1946, is:

• a. The French company specializing in export credit insurance (“ECA” Export Credit Agency)

• b.  A bank on a European scale

• c.  An international bank

In a documentary credit, the maximum time available to a bank to examine the documents entrusted to (qui lui sont confiés) is:

• a. 21 working days

• b. 5 working days

• c. 7 working days

Choisissez un seul nom d’Institutions Financière supranationale engagée dans le financement du commerce international ?

• a) Fond Monétaire International - FMI

• b) OCDE - Organisation de coopération et de développement économiques

• c) Banque Mondiale via IFC (Internation Finanacial Corp)

• d) OMC - Orgnaisation Mondiale du Commerce

Supervision of the financial sector is mainly ensured in France by two supervisory authorities? please give the names

What are the Rules of Law applicable in the context of a Standby Letter of Credit (SBLC)?

• a) The URGD758

• b. The French civil code

• c. The UCP 600

• d. ISP98

In the context of a documentary credit (Letter of Credit), on whom does the issuing bank take a direct risk?

• a. The exporter

• b. The importer

• c. Neither of the two