
BAIB3004 Week 12 24/25
Authored by Rita Gao
Business
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is considered a commercial risk in international trade?
Political instability
Buyer insolvency
Currency fluctuation
Natural disaster
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main advantage of using a letter of credit (L/C) in international trade?
It is the fastest payment method
It guarantees payment to the seller if terms are met
It requires no documentation
It is the cheapest payment method
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which payment method involves the buyer’s bank sending funds directly to the seller’s bank account?
Cheque
Bank transfer
Documentary collection
Letter of credit
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a product, production, or transport risk?
Exchange rate fluctuation
Goods damaged during shipping
Buyer refusing to pay
Government-imposed import ban
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In a documentary collection, who guarantees payment to the seller?
The buyer
The seller’s bank
The buyer’s bank
No one guarantees payment
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which payment method is generally considered the least secure for the exporter?
Letter of credit
Documentary collection
Bank transfer
Cheque
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What type of risk is associated with exchange rate fluctuations affecting the value of payments?
Commercial risk
Political risk
Currency risk
Financial risk
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