A(n) __________________ is a payment form where a shipment is held by the importer until the merchandise has been sold, at which time payment is made to the
Exporter.
A) cash with order
B) confirmed irrevocable letter of credit
C) sight draft
D) time draft
E) consignment

Question

Quizplus · Accepted Answer

The description matches that of a consignment, where the importer only pays the exporter once the goods have been sold. None of the other options match this description - cash with order refers to upfront payment, a confirmed irrevocable letter of credit ensures payment upon shipment, a sight draft requires payment upon presentation of documents and a time draft allows for a delay in payment but not based on the sale of the goods.

A(n) __________________ Is a Payment Form Where a Shipment Is