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CTP · Question #724

CTP Question #724: Real Exam Question with Answer & Explanation

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

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