Questions from Financial Markets

Q: Describe the various ways by which an exporter may finance an international

Describe the various ways by which an exporter may finance an international shipment of goods. How may commercial banks assist the exporter in the collection of drafts?

Q: How do importers protect themselves against improper delivery of goods when they

How do importers protect themselves against improper delivery of goods when they are required to make payment as they place an order?

Q: Describe the process by which an importing firm may substitute the credit

Describe the process by which an importing firm may substitute the credit of its bank for its own credit in financing international transactions.

Q: How may a bank protect itself after having issued a commercial letter

How may a bank protect itself after having issued a commercial letter of credit on behalf of a customer?

Q: Describe the costs involved in connection with financing exports through bankers’ acceptances

Describe the costs involved in connection with financing exports through bankers’ acceptances.

Q: Describe the ultimate sources of funds for export financing with bankers’ acceptances

Describe the ultimate sources of funds for export financing with bankers’ acceptances. How are acceptances acquired for investment by these sources?

Q: Explain the role played by the Export-Import Bank in international

Explain the role played by the Export-Import Bank in international trade. Do you consider this bank to be in competition with private lending institutions?

Q: 1. What is the term for an arithmetic process whereby a

1. What is the term for an arithmetic process whereby a future value decreases at a compound interest rate over time to reach a present value? a. Compounding b. Discounting c. Investing d. Specula...

Q: Commercial letters of credit, traveler’s letters of credit, and traveler’s

Commercial letters of credit, traveler’s letters of credit, and traveler’s checks all play an important role in international finance. Distinguish among these three types of instruments.

Q: Briefly indicate the problems facing the United States in its attempt to

Briefly indicate the problems facing the United States in its attempt to maintain international financial equilibrium.