Question : 91.When serving as a _____, a bill of lading specifies that : 1299464

91.When serving as a _____, a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge.  

A. contract

B. receipt

C. document of title

D. letter of credit

E. bill of exchange

92.When serving as collateral, the bill of lading: 

A. can be used to advance funds to the exporter by its local bank before or during shipment.

B. specifies that the carrier is obligated to provide a transportation service in return for a certain charge.

C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.

D. states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.

E. is an order written by an exporter instructing an importer, or an importer’s agent, to pay a specified amount of money at a specified time.

93.When serving as a _____, a bill of lading is used to obtain payment or a written promise of payment before the merchandise is released to the importer.  

A. document of title

B. contract

C. receipt

D. time draft

E. collateral

94.Which of the following is the first step in a typical international trade transaction? 

A. The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms.

B. The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy.

C. The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit.

D. The exporter ships the goods to the importer on a common carrier. An official of the carrier gives the exporter a bill of lading.

E. The trusted third party (usually a bank) issues a letter of credit in the importer’s favor and sends it to the exporter’s bank.

95.The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries.  

A. sogo shosha

B. World Bank

C. Overseas Commercial Service

D. Ex-Im Bank

E. Export Credit Insurance Association

96.The _____ guarantees repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports.  

A. United Nations

B. Central Bank

C. World Bank

D. Ex-Im Bank

E. Export Credit Insurance Association

97._____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S. exports.  

A. The Department of Commerce

B. The World Bank

C. Ex-Im Bank

D. Bank of New York

E. The Small Business Administration

98.An exporter has to forgo a letter of credit when:  

A. competing exporters also require letters of credit.

B. the importer is facing stiff competition from other importers.

C. the exporter is a dominant player in a noncompetitive market.

D. the importer is in a strong bargaining position.

E. he or she knows that the importer will default on payment.

99.The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. The exporter can insure against this possibility by:  

A. approaching the World Bank.

B. buying export credit insurance.

C. obtaining pre-export financing.

D. filing a suit against the importer in court.

E. taking financial aid from Ex–Im Bank.

100.An export credit insurance is necessary when the:  

A. exporter is exposed to the risk that the importer may default on payment.

B. exporter is dealing in a country that has a nonconvertible currency.

C. exporter is unable to obtain any pre-export financing.

D. exporter has received a letter of credit from the importer’s bank.

E. exporter has to enter a barterlike agreement.