Trade Finance

Which country was the world's leading overall trader of merchandise and services in 2018?

In 2018, what was the value of world merchandise trade?

What is the predicted impact of Covid-19 on trade from 2020 according to the WTO?

According to the text, what does global economic growth depend on?

Which of the following is true about the performance of developing economies in world trade in the past 10 years?

What are some specific risks that importers and exporters are exposed to when carrying out cross-border business?

According to the text, what is the purpose of data in mitigating trade risks?

What is the major challenge in the trade finance industry when it comes to sharing information?

Which method of payment in trade finance involves the buyer paying the seller in advance of the goods being shipped?

Under a documentary collection, who presents financial and/or commercial documents related to the goods to the importer for payment?

Which method of payment in trade finance is normally utilized when each party is known to the other and trusted?

What is the purpose of a documentary collection in trade finance?

Which organization serves as a global forum and rule-making body for banks worldwide, with a focus on the financing of international trade?

According to the text, what are the risks associated with conducting cross-border trade?

What are the conditions for a valid trade finance contract, according to the London Institute of Banking & Finance?

What is the purpose of the International Chamber of Commerce (ICC)?

Which type of credit allows for advance payment but provides for storage in the name of the bank as security?

Under a secured or documentary red clause credit, advances are made against presentation of warehouse receipts or similar documents together with the beneficiaries undertaking to deliver the bill of lading and/or other documents required upon shipment.

What is the primary source of repayment for the second issuing bank in a back-to-back credit?

A transferred credit can be transferred at the request of a second beneficiary to any subsequent beneficiary.

Which one of the following is a risk that may occur during the movement of goods in a trade transaction?

What is a documentary credit?

What is the difference between a revocable and an irrevocable credit?

What is a special type of documentary credit that authorizes advance payment to the beneficiary before presentation of documents?

Which of the following is NOT mentioned as a specific guideline for transactions by a bank?

What are some regional and global sanctions mentioned in the text?

What is the intent of a demand guarantee?

What does a demand guarantee represent?

What is the expiry event of a demand guarantee?

What has ICC issued a recommendation paper concerning?

Which of the following is NOT a type of standby credit commonly seen in trade finance transactions?

What is the most appropriate set of rules for handling standby credits?

What is the primary purpose of a standby credit?

What is the origin of the term 'standby letter of credit'?

Which statement accurately describes the concept of confirmation in trade finance?

What is the purpose of a counter-guarantee in trade finance?

What is the difference between a direct guarantee and an indirect guarantee?

What may be required in a counter-guarantee document for the issuance of a guarantee by the guarantor or issuing bank?

What is the estimated value of the trade finance financing gap?

What is the basis for future trade finance offerings according to the text?

Which organization jointly produced a paper on standard definitions for techniques of supply chain finance?

What is the purpose of the Global Supply Chain Finance Forum (GSCFF) according to the text?

Which publication introduced the Uniform Rules for Collections?

When did the latest revision of the Uniform Rules for Collections come into effect?

What is the purpose of the Uniform Rules for Collections?

What is the purpose of the ICC Rules for Documentary Instruments Dispute Resolution Expertise (DOCDEX)?

Which of the following is a synonym for factoring?

What is the main difference between forfaiting and factoring?

What is the average tenor of forfaiting transactions?

What is the role of the factor in factoring?

Which publication introduced rules for demand guarantees in 1992?

What is the main purpose of UCP 600?

Which set of ICC rules is considered more suitable for standby credits than UCP 600?

Which type of financing provides funds to a seller for the sourcing and manufacturing of goods prior to delivery to a buyer?

What is the purpose of distributor finance in trade finance?

What does loan or advance against inventory financing typically involve?

Which financing option allows a seller to receive the discounted value of receivables prior to the due date?

What is another term for receivables lending or receivables finance?

What is the purpose of pre-shipment finance in trade finance?

Which organization is the main provider of Islamic finance?

Which type of financing system is often described as asset-based?

What are the two key Shariah contracts used for trade financing in Islamic finance?

What is the purpose of countertrade in international trade?

Which of the following is a potential risk associated with structured trade finance?

What is the purpose of export credit insurance?

What are the two main types of risks covered by export credit insurance?

What are Export Credit Agencies (ECAs) and what do they provide?

Which of the following is NOT one of the state-owned institutions that comprise China's export financing infrastructure?

According to the text, which countries are NOT participants in the OECD's 'Arrangement on Officially Supported Export Credits'?

What is the role of commercially provided export credit insurance?

According to the text, what is the primary source of repayment for the second issuing bank in a back-to-back credit?

Which of the following is true about BBF facilities?

What is the purpose of warehouse financing?

What is the typical tenor of RBL facilities?

What does the borrowing base amount in RBL facilities depend on?

Which type of financing is secured by a combination of pledged inventory and receivables, and generates self-liquidating cash flows from the sale of commodities to acceptable counterparties?

What is the risk exposure for the lender in a prepayment finance (PPF) loan?

What is the main difference between term loans and PPF loans?

What is the formula for calculating the borrowing base amount in borrowing base finance (BBF)?

Which of the following is NOT a main political or country risk covered in insurance policies?

Which of the following is NOT a role of multilateral development banks (MDBs)?

Which MDB programme aims to promote foreign trade to, from, and amongst EBRD countries?

Which MDB programme supports a wide range of transactions, from commodities and capital goods to medical supplies and consumer goods?

Which of the following is NOT a feature of SAF (Supply Chain Asset Finance) products?

What do currency codes typically consist of?

Which currency code does not use a currency designator initial as the third letter?

When was the currency code for the Russian ruble changed from RUR to RUB?

What is the primary purpose of SAF based on the Industrial Internet of Things (IIoT) and real-time data?

Which of the following is NOT a consideration for SAF products?

According to the text, what is the Fourth Industrial Revolution often referred to as?

According to Professor Klaus Schwab, what is the Fourth Industrial Revolution fundamentally changing?

What does the author of the text compare data to?

What does the author state would likely be the preference of clients in relation to data ownership?

Which of the following is NOT an advantage of blockchain validation in trade finance?

What is the purpose of a smart contract in trade finance?

What is the role of miners in blockchain validation?

What is the main advantage of distributed ledger technology (DLT) in trade finance?

What is the aim of the WEF's Center for the Fourth Industrial Revolution?

According to the text, what is the purpose of the UK government's policy paper on the Fourth Industrial Revolution?

What is the main benefit of the Internet of Things (IoT) technology?

According to the text, what impact does regulation have on innovation?

Which of the following is considered a financial crime in trade finance?

What is the objective of the URDTT?

What is the potential consequence of reputational risk for a bank in trade finance?

Which type of document is questionable in terms of transferring rights and liabilities without specific contractual agreement?

Which of the following best describes money laundering in trade finance?

What are the three distinct phases of money laundering in trade finance?

Which of the following is NOT a risk factor considered by the Financial Action Task Force (FATF) for terrorist financing?

What is the definition of proliferation financing according to the FATF?

Which of the following accurately describes a smart contract?

What is the purpose of artificial intelligence (AI) in smart devices?

What is the difference between AI and machine learning?

How does SWIFT support banks' finance offerings in trade finance?

Which of the following best describes dual-use items?

What are sanctions in trade controls?

What is the primary purpose of sanctions according to the text?

What is the difference between dual-use items and sanctions?

What types of goods can be considered dual-use items?

What are the characteristics of transactions related to proliferation financing compared to conventional money laundering?