Which of the Following Statements Is True of Export Credit

question 9

Multiple Choice

Which of the following statements is true of export credit insurance?

• A) Exporter will require more insurance if a letter of credit is used in transactions.
• B) The FCIA provides coverage against commercial risks and political risks.
• C) Private associations cannot offer export insurance in the United States.
• D) Organizations do not receive coverage against political risks of global trade.

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Definitions:

Receiving Report

A document that records the details of goods received by a company, often used to verify deliveries and invoice payments.

Predetermined Overhead Rate

A predetermined overhead rate is an estimated rate used to assign overhead costs to products or job orders, based on a specific activity base.

Budget Data

Financial plans containing detailed projections of revenues and expenses for a future period, often used for management control and planning.

Factory Overhead

The indirect costs associated with manufacturing, including expenses like utilities and maintenance not directly tied to the production of goods.