AFP
CTP · Question #724
(Topic 8) An L/C in favor of a U.S. exporter is issued by a bank in an emerging-market country, and it is confirmed by the exporter's bank. What risk is reduced for the U.S. exporter?
The correct answer is A. Credit risk. See the full explanation below for the reasoning.
Question
- (Topic 8)
An L/C in favor of a U.S. exporter is issued by a bank in an emerging-market country, and it is confirmed by the exporter’s bank. What risk is reduced for the U.S. exporter?
Options
- ACredit risk
- BCurrency risk
- CRe-investment risk
- DValuation risk
How the community answered
(63 responses)- A78% (49)
- B13% (8)
- C3% (2)
- D6% (4)
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