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Settlement of International Trade Part 1

Total questions: 13

Worksheet time: 3hrs 15mins

Name
Class
Date
1.

In international trade, the currency must exchange into

a)

local currency

b)

foreign currency

2.

Settlement is also known as

a)

export

b)

import

c)

transction

d)

payment

3.

Telegraphic Transfer is

a)

method of fund transfer

b)

method of shipping

c)

methods of importing

4.

SWIFT is a

a)

shipping system to process export payments between member banks worldwide

b)

telecommunication system to process interbank financial payments between member banks worldwide

c)

importing system to process payments between member banks worldwide

5.

There are ____________ methods of payment in international trade.

a)

five

b)

six

c)

seven

6.

which are the following known as methods of settlement in international trade

a)

Documentary Collection

b)

Advance payments

c)

Bilateral Payment Arrangement (BPA)

d)

Balance of payment

e)

EXW

7.

Nostro account also known as

a)

Your money with us

b)

My money with you

c)

Our money with you

8.

Vostro account also known as

a)

Your money with us

b)

Their money

c)

Our money with us

9.

Open account is a sale on credit where

a)

Buyer pay the good first and seller collects payment later

b)

Seller sends the good first and collects payment later

c)

Buyer and seller did not send goods and payment

10.

Under open account arrangement, the credit status and general reputation of the buyer and seller are

a)

good (Trust has built up between parties)

b)

poor

c)

moderate

11.

Consignment can be refer to

a)

Shipments of goods are arranged under agreement that payment and goods should be sold immediately

b)

Shipments of goods are arranged under agreement that payment be made after goods are sold by a specified period.

c)

Shipments of goods by a specified period.

12.

there are _________ types under collection method

a)

one

b)

two

c)

three

13.

Clean collection may differ from documentary collection. Documentary collection includes:

a)

financial documents

b)

commercial documents

c)

shipping documents

d)

checking documents