Imports Exports Quiz

Global Trade quiz

Imports and Exports Global Trade test questions:

Ques. Which of the following major issues does not relate to the financial aspects of exporting?
(a) the price of the product
(b) the method of payment
(c) location of production
(d) terms of payment

Ans. (c)

Ques. All of the following are major types of indirect intermediaries EXCEPT:
(a) the export management company
(b) the export trading company
(c) export agents
(d) distributors

Ans. (d)

Ques. A bill for goods issued by the seller that contains the description of the goods, the address of the buyer and seller, and delivery and payment terms is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) shipper’s export declaration.
(d) certificate of origin

Ans. (b)

Ques. A letter of credit:
(a) is issued by a credit agency to a bank.
(b) cannot be amended.
(c) is more secure than cash in advance.
(d) obligates the importer’s bank to honour a draft presented to it

Ans. (d)

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Ques. A revocable letter of credit:
(a) obligates the exporter’s bank to honor a draft presented to it.
(b) can only be amended if all the parties involved agree.
(c) can be amended by any of the parties involved at any point.
(d) obligates the importer’s bank to honor a draft presented to it

Ans. (c)

Ques. From the exporter’s point of view, all of the following are major issues that relate to the financial aspects of exporting EXCEPT:
(a) the methods of payment
(b) the financing of receivables
(c) insurance
(d) intermodal transportation

Ans. (b)

Ques. A document that controls exports and is used to compile trade statistics is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) certificate of origin.
(d) shipper’s export declaration

Ans. (d)

Ques. An irrevocable letter of credit:
(a) can only be amended if all parties involved agree.
(b) is issued by an irrevocable credit agency.
(c) can be amended by any of the parties involved at any point.
(d) obligates the exporter’s bank to pay interest to the importer

Ans. (a)

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Ques. Which of the following basic methods of payments is the least secure in terms of security to the exporter?
(a) letter of credit
(b) draft or bill of exchange
(c) open account
(d) Cash before shipment

Ans. (c)

Ques. A document that is a receipt for goods delivered to the common carrier for transportation, a contract for the services rendered by the carriers, and a document of title is known as a(n):
(a) export license
(b) commercial invoice
(c) consular invoice
(d) bill of lading

Ans. (d)

Ques. Countries often use ___ to determine the specific tariff schedule for imports; it is a document that indicates where products originate.
(a) commercial invoice
(b) shipper’s export declaration
(c) bill of lading
(d) certificate of origin

Ans. (d)

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Ques. A confirmed letter of credit:
(a) obligates the importer’s bank to honour a draft presented to it.
(b) obligates the exporter’s bank to honour a draft presented to it.
(c) cannot be amended.
(d) only has the confirmed guarantee of the importer’s bank

Ans. (d)

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