Professional Documents
Culture Documents
Questions and Answers
Questions and Answers
2. Which financial instrument provides a guarantee from a bank to pay the exporter once the
specified conditions are met?
a) Bank loan
d) Forfaiting
3. In trade finance, what role does the exporter's bank play in a documentary collection?
c) Trade sanctions
d) Stock market volatility
5. What type of financing assists importers in funding their purchases and managing cash flow?
b) Forfaiting
c) Import Financing
d) Factoring
6. Which trade finance instrument allows traders to obtain loans using warehouse receipts as
collateral for the stored goods?
a) Export Credit
b) Bank Guarantee
7. What is the process of purchasing export receivables from an exporter without recourse to the
exporter?
a) Factoring
b) Forfaiting
c) Bank Guarantee
Answer: b) Forfaiting
8. Trade finance services often involve currency exchange and hedging products to mitigate the
risks associated with:
a) Market competition
b) Regulatory changes
d) Technological advancements
9. Which financial instrument ensures a specified payment or performance will be made if the
seller fails to meet contractual obligations?
a) Bank Guarantee
d) Factoring
10. In trade finance, what role does the importer's bank play in a documentary collection?
11. What type of financing helps exporters with working capital needs, pre-shipment costs, and
production expenses?
c) Factoring
d) Forfaiting
12. What is the process of selling accounts receivable to a third-party financial institution at a
discount called?
a) Forfaiting
b) Bank Guarantee
c) Factoring
Answer: c) Factoring
13. Which type of trade finance instrument allows exporters to sell their accounts receivable to a
third-party financial institution without recourse to the exporter?
b) Export Financing
c) Factoring
d) Forfaiting
Answer: c) Factoring
a) Vendor-to-Government
b) Vehicle-to-Grid
c) Visa-to-Government
d) Volume-to-Government
Answer: b) Vehicle-to-Grid
15. Which type of electric vehicle uses hydrogen and oxygen to generate electricity and produces
water vapor as the only byproduct?
16. What is the term used for the process of transmitting electricity from the power grid to an
electric vehicle for charging purposes?
a) Electrification
b) Transmission
c) Grid-to-Vehicle (G2V)
d) Charging
17. Which type of electric vehicle uses only an electric motor for propulsion and does not have
an internal combustion engine as a backup?
a) 5 minutes
b) 30 minutes
c) 2-8 hours
d) 24 hours
19. Which type of electric vehicle is powered by electricity generated by burning fossil fuels in a
power plant?
20. What is the term used for the process of supplying electricity from an electric vehicle's
battery back to the power grid during periods of high demand or emergencies?
a) Grid balancing
b) Vehicle-to-Grid (V2G)
d) Grid support
a) Bank Guarantee
c) Documentary Collection
d) Factoring
22. Which trade finance product allows an exporter to receive payment immediately upon
shipment of goods, while the importer delays payment until a specified future date?
a) Open Account
b) Documentary Collection
d) Forfaiting
23. What is the term used for a credit facility extended by a bank to an importer to finance the
purchase of goods or services from a specific exporter?
a) Supplier Credit
b) Pre-Shipment Financing
d) Export Credit
24. Which trade finance product involves the sale of short-term trade receivables, such as
invoices, to a financial institution at a discount to accelerate cash flow?
a) Factoring
c) Forfaiting
d) Export Financing
Answer: a) Factoring
25. In trade finance, what does the term "protest" refer to?
26. Which organization regulates and standardizes international trade practices, including trade
finance instruments like letters of credit?
27. What is the process of offsetting or canceling a trade debt by setting it against another trade
debt called?
a) Trade swap
b) Trade offset
c) Countertrade
d) Trade adjustment
Answer: c) Countertrade
28. Which trade finance instrument allows an exporter to finance their production costs and
fulfill an order without using their own working capital?
a) Factoring
b) Pre-shipment Financing
c) Bank Guarantee
d) Documentary Collection
29. What is the term used for the risk associated with a change in government policies,
regulations, or political stability that may impact international trade transactions?
a) Credit risk
b) Currency risk
c) Country risk
d) Compliance risk
30. Which trade finance product provides coverage for losses arising from buyer defaults,
insolvency, or protracted default?
a) Bank Guarantee
d) Forfaiting