Payment Methods for International Transactions/Assessment

Assessment
{The method of payment that carries the greatest risk for the exporter is -cash in advance. -letter of credit. -documentary collection. +open account.
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{The method of payment that carries the greatest risk for the importer is +cash in advance. -open account. -letter of credit. -documentary collection.
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{When shipping under a letter of credit the exporter is guaranteed payment when -the importer has received and inspected the goods at the port of import. +the exporter has complied with all terms and conditions as specified in the letter of credit. -the exporter has shipped the product and the bill of lading notes it as clean. -the importer advises the bank that the funds can be safely transferred to the exporter.
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{A documentary collection differs from a letter of credit in that -the exporter does not send the documents to a bank. -the importer does not receive the documents for a bank. -the fees for a documentary collection are greater than for a letter of credit. +the exporter cannot transfer risk to a banking institution.
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