CIPS Exam A9 Topic 1 Question 55 Discussion

Actual exam question for CIPS's A9 exam

Question #: 55
Topic #: 1

For relatively small value purchases, which of the following is the most desirable method of payment for an international buyer?

APayment in advance

BLetter of credit

COpen account

DBill of exchange

Show Suggested Answer

Suggested Answer: D

by Blondell at Apr 14, 2024, 09:40 AM

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Dominga

1 days ago

I agree. Letter of credit provides security for both the buyer and seller.

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Mabel

2 days ago

I think Letter of credit would be the most desirable method of payment.

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Janella

24 days ago

Ah, the age-old debate: do you trust your international buyer or not? I'm with Magda on this one. Better safe than sorry when it comes to my hard-earned money.

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Magda

26 days ago

You guys are overthinking this. The answer is clearly A, payment in advance. Why risk it with open account when you can just get the cash upfront? Safety first!

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Jamie

27 days ago

I was torn between B and C, but I think open account makes the most sense. Less paperwork and red tape to deal with. Plus, who doesn't love a little international credit?

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Jesusa

28 days ago

Hmm, I'm leaning towards option C, open account. It seems the most convenient and flexible for small purchases, as long as you trust the buyer. What do you all think?

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Eugene

1 months ago

Come on, this is a classic international trade question. We should all be familiar with these payment options by now. I'm ready to tackle this one.

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I'm not a fan of this question. It seems too focused on specific payment methods rather than broader international business concepts. I'd prefer a more open-ended question that tests our understanding of the overall import/export process.

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CIPS Exam A9 Topic 1 Question 55 Discussion

Contribute your Thoughts:

Dominga

Mabel

Janella

Magda

Jamie

Jesusa

Eugene

Levi