International Panorama - Module 2 Quiz

Chapter 3

This risk is the result from a random event (contingency), based on the randomness of nature.

• Aleatoric risk

• Epistemic risk

• International risk

• Random risk

Chapter 3

Rating agencies always have very similar assessments of country risk.

• True

• False

Chapter 3

Rating agencies use this indicator to measure cross-border conflict and relations with a country’s neighbors.

• Social pressures

• External financing needs

• Regime legitimacy

• International security

Chapter 4

It is used to measure social inequality on a scale of zero to one, with zero being total equality and one being total inequality.

• GDP

• GINI coefficient

• GDP growth rate

• Inequality costs

Chapter 4

When mapping out which indicators are likely to apply to most countries to be included in a risk framework, the following are related to the financial considerations:

• Availability of consumer credit, excessive growth of national debt, and ability to convert/transfer currency freely

• Orientation towards Western values, work ethic, history of ethnic conflict, and degree of homogeneousness of population

• Degree of economic openness, monetary stability, external financing needs, and fiscal imbalance

• Degree of political competition, regularity of elections, political legitimacy, and frequency of changes in government

Chapter 4

When constructing the Freedom in the World index, a score of one means the least free and a score of seven means the freest:

• True

• False

Chapter 5

Most private sector political risk insurance is underwritten through:

• AXA Seguros

• Samuel Garcia

• Lloyd's

• Andres Martinez

Chapter 5

Foreign traders or investors have the obligation to surrender their export proceeds to Indonesia's Central Bank.

• True

• False

Chapter 5

The underwriting process for public sector organizations is much longer and deeper compared to the private sector.

• True

• False

Chapter 5

This type of insurance protects against buyer payment default in private sales.

• Trade Disruption Insurance

• Embargo Insurance

• Export Credit Insurance

• Exclusive insurance