5 Questions
Which risk can be mitigated by obtaining a credit report for the seller?
Risk due to exporter
How much currency is loaded in MCTC?
20
Is LC open for imports of prohibited goods?
False
What is the threshold amount for requiring a BG for advance payment?
$5,00,000
Does advance against incentives come under post-shipment finance?
True
Study Notes
Mitigating Risks
- Obtaining a credit report for the seller can mitigate the risk of non-payment.
MCTC (Mobile Cash Tender Container)
- MCTC is loaded with $10,000 or €10,000 currency.
Letter of Credit (LC)
- An LC is not open for imports of prohibited goods.
Bank Guarantee (BG) for Advance Payment
- A BG is required for advance payments exceeding ₹10 lakh ( ₹1 million).
Post-Shipment Finance
- Advance against incentives does not come under post-shipment finance.
Test your knowledge on international trade and finance with this quiz! From credit risk to currency exchange rates, this quiz covers a range of topics related to the risks and regulations of global commerce. Challenge yourself and see how well you understand the intricacies of international trade.
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