Which of the Following Is an Advantage of Export Credit

question 41

Multiple Choice

Which of the following is an advantage of export credit insurance?

• A) It gives a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.
• B) It protects exporters from the risk that the foreign importer will default on payment.
• C) It puts the importer in a strong bargaining position.
• D) It enables exporters to insist on a letter of credit.
• E) It allows for a delay in payment.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied, usually illustrating an upward slope.

Equilibrium Quantity

is the quantity of goods or services supplied and demanded at the equilibrium price, where market demand equals market supply.

Price Floor

A price floor is a government-imposed limit on how low a price can be charged for a commodity, typically implemented to protect producers' income.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific time period.