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Questions and Answers
Which payment method requires the buyer to pay the seller before the goods are shipped?
Which payment method requires the buyer to pay the seller before the goods are shipped?
Which payment method provides a guarantee of payment from the buyer's bank to the seller?
Which payment method provides a guarantee of payment from the buyer's bank to the seller?
Which payment method involves the buyer receiving the goods before making payment to the seller?
Which payment method involves the buyer receiving the goods before making payment to the seller?
Which payment method requires the involvement of a bank to facilitate the transfer of funds?
Which payment method requires the involvement of a bank to facilitate the transfer of funds?
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Which payment method carries the risk of cancellations and non-receipt of payment?
Which payment method carries the risk of cancellations and non-receipt of payment?
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Study Notes
Payment Methods
- Prepayment: The buyer pays the seller before the goods are shipped.
- Letter of Credit: Provides a guarantee of payment from the buyer's bank to the seller.
- Open Account: The buyer receives the goods before making payment to the seller.
- Bank Transfer: Involves the involvement of a bank to facilitate the transfer of funds.
- Open Account: Carries the risk of cancellations and non-receipt of payment.
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Description
Test your knowledge of international trade payment methods with this quiz. Learn about the risks and benefits of common payment terms such as Cash in Advance, Letter of Credit, and more. Find out which method is best for your business.
