Minimizing Exchange Rate Risk in Loans
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Mark question
Satemenohtfequeositn
If I have a business transaction that I will charge in USD, can I avoid, alleviate or minimize
the exchange rate risk when taking out a bank loan for the total amount of the operation
in USD?
Select one:
a. Yes, if I match the bank loan repayments with the collections in USD
from the commercial operation.
I go into debt in USD and, having obtained the bank loan for 100% of the order, I exchange everything to
EUR at the spot exchange rate of the day. There is no exchange risk. I will repay the due dates in USD of
loan through the payments in USD that I receive from the payment milestones of the contract.
b. No, since the loan gives me USD converted to EUR and I have to pay it back.
EUR.
Feedback
The correct answer is: Yes, if I match the bank loan payments with the
collections in USD from the commercial operation.
Quesotin2
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Mark question
Satemenohtfequeositn
In the exchange of goods and services, the payment made before delivery
of the good or service is:
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Select one:
Deferred payment.
b. Payment on sight.
c. Advance payment.
It is usually a percentage of the order amount (in some special cases and with amount
small, it can reach up to 100%) that the exporter receives from the buyer before starting to
execute the order. It is also referred to as advance payment or deposits.
d. Cash payment.
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The correct answer is: Advance payment.
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Mark question
Satemenohtfequeositn
Forfaiting is a concept that, among other things, covers:
Select one:
a. The exchange rate risk.
b. Political, commercial, and credit risks.
c. The credit risk.
d. Political and commercial risks.
Indeed, but they are not the only risks covered by this financing formula.
normally in the medium and long term.
Feedback
The correct answer is: Political, commercial, and credit risks.
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Mark question
Satemenohtfequeositn
The currency option modalities can be, depending on their expiration:
Select one:
a. Future options and international options.
b. European options and American options.
In the European option, the option can only be exercised on the agreed expiration date.
American, the option can be exercised at any time from the signing of the contract.
options with the bank until the due date.
c. Asian options and swap options.
d. The options have a single expiration, whatever their modality.
Feedback
The correct answer is: European options and American options.
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Mark question
Satemenohtfequeositn
The sovereign external debt of a country includes:
Select one:
The funding granted to public entities of the country.
b. The financing granted to public entities of the country and the financing granted by
public entities of the country.
c. The financing granted to public entities of the country and that granted to the sector
private, but guaranteed by the State itself.
Private debt guaranteed by the State is considered as public debt from a financial perspective.
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d. The funding provided by public entities of the country.
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The correct answer is: The funding granted to public entities in the country and that granted to
private sector, but guaranteed by the state itself.
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Mark question
Satemenohtfequeositn
In an individual policy for documentary credits (DC) that covers the risks
inherent to the confirmation of the CD issued by the issuing bank, what would the payment include?
from the premium to the insurer?
Select one:
a. Coverage of political (and extraordinary) risk.
b. The coverage of commercial risk.
c. None of the three previous situations.
d. Coverage of political (and extraordinary) and commercial risk.
All political risk is covered, so there will be no issues from the country of origin that affect,
delay or postpone the payments of the CD, since this payment will be made in a bank outside the country.
The little commercial risk is also covered, mainly regarding the bank's situation.
transmitter.
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The correct answer is: Coverage of political (and extraordinary) and commercial risk.
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Mark question
Satemenohtfequeositn
The pre-financing of exports means mobilizing the funds that the exporter
keep clients captive through delays.
Select one:
a. True.
b. False.
The objective of pre-financing is to have the necessary liquidity for manufacturing and stockpiling.
of the goods to be exported.
Feedback
The correct answer is: False.
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Mark question
Satemenohtfequeositn
Could it happen that the issuing bank of a documentary credit (DC) could go bankrupt?
Select one:
a. I don't care, if the payment of the CD has been opened for us, it's in sight.
Yes, but highly difficult.
A bank, especially if it is a top-tier one, can fail, but it is a slow and laborious process.
No, never.
d. I don't care, as long as the CD that has been opened for us is confirmed.
Feedback
The correct answer is: I don't care, as long as the account they have opened for us is confirmed.
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Mark question
Satemenohtfequeositn
Can a Documentary Credit be reversed once opened?
Select one:
a. Yes. Under a series of conditions under which the person who requested it leaves.
losing.
b. Yes. If payment has not been made to your beneficiary.
c. No. Once a Documentary Credit is opened, it is irrevocable.
In case the first phase of the process that requires a Documentary Credit has been initiated, no
it can be reversed.
Feedback
The correct answer is: No. Once a Documentary Credit is opened, it is irrevocable.
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Mark question
Satemenohtfequeositn
Does the risk disappear if we do a good risk analysis?
Select one:
Yes. If it is identified, analyzed, anticipated, and valued.
b. No. Even if the best risk analysis is done, it does not disappear.
The risk never disappears. But it can be reduced or we can learn to live with it.
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Yes. The analysis must be very good, but it can lead to eliminating the risk by
complete.
Feedback
The correct answer is: No. Even if the best risk analysis is done, it does not
disappears.
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