This page has been robot translated, sorry for typos if any. Original content here.

Money and credit - Ivanov V.M.

test questions

1. Definition of international settlements.

2. The main intermediaries in international settlements.

3. Factors affecting the state of international payments.

4. Currency and financial terms of foreign trade contracts.

5. Methods of risk insurance in international practice.

6. Types of protective clauses.

Tests for self-control

1. International settlements are:

a) organization of payments in foreign economic activity;

b) the system of organization and regulation of payments for monetary claims and obligations arising in foreign economic activity between states;

c) the system of organization and regulation of payments for monetary claims and obligations arising in foreign economic activity between organizations and citizens located in territories of different countries;

d) the system of organization and regulation of payments on monetary claims and obligations arising in foreign economic activity between banks located in the territories of different countries;

e) all answers are correct;

e) answers b), c) are correct.

2. The main intermediaries in international settlements are:

a) the state through special authorities;

b) insurance companies;

c) clearing companies;

d) banks;

e) transnational corporations;

e) the answers a), b), c), e) are correct;

g) all answers are correct.

3. The nostro account is an account in which:

a) instructions of foreign banks in this bank;

b) payments for international operations;

c) instructions of the bank in foreign banks;

d) overdrafts;

e) holdings;

e) the answers a), e) are correct;

g) all answers are correct.

4. Specify the approach when choosing a strategy for protection against currency risks:

a) decision-making on special measures for insurance of currency risks;

b) insurance of a part of the contract (open foreign exchange position);

c) the choice of a specific risk insurance method;

d) the choice of a specific method of risk insurance;

e) internationalization of monetary relations;

e) the answers a), b), c), e) are correct;

g) all answers are correct.

5. Protective clauses may be:

a) gold;

b) currency;

c) multicurrency;

d) commodity-price;

e) combined;

e) answers b), c), d) are correct;

g) all answers are correct.

Task

JSCB Kiev opened a revolving documentary letter of credit to the Ukrainian company Ukrexport for a monthly shipment of wood worth $ 20,000 per month. The world price of wood is 12.5 US dollars per 1 m3, the delivery condition is CIF, any European port. Timber shipments on the indicated dates are resold as follows:

date

volume, m3

The country

Price 1 m3

12 June

1500

Poland

237.5 PLN

July 1b

1b50

Turkey

1023b, 25 lira

August 10

1450

Romania

5b lei

Payments by end customers were made against bills of exchange issued with payment 1 month after the indicated date. The transaction was funded through an overdraft in the currency account of a Ukrainian company in a bank in US dollars. In each case, a letter of credit payment was made and debited to the account in US dollars 10 days after each shipment. Replacing invoices and necessary drafts issued to final consignees are dated two days later.

Using additional information, determine the financial result of the Ukrainian company.

The fee for a documentary letter of credit and collection amounted to $ 137.50 (debited after completion of all transactions), the overdraft fee was 16% per annum (365 days in a year).

Information on exchange rates for US dollars:

date

The country

Spot Course

One-month forward course

June 24

July 28th

August 22

September 22nd

Poland

Turkey

Romania

Ukraine

17-19

81b, 20-81b, 50 4.12b0-4.1280

5.4b-5.48

0.53-0.43 bonus cents

1 3/4 -21/4 cents discount

0.60-0.50 cent premium