A U.S. company would invest in export credit insurance when it
A) is exposed to the risk that an importer may default on payment.
B) is dealing in a country that has a nonconvertible currency.
C) is unable to obtain any pre-export financing.
D) has received a letter of credit from the importer's bank.
E) has to enter a barter-like agreement.

Question

Quizplus · Accepted Answer

Export credit insurance protects the exporter against the risk of non-payment by the importer, which is the situation described in choice A.

A US Company Would Invest in Export Credit Insurance When It