Which of the following statements is true of export credit insurance?
A) Exporter will require more insurance if a letter of credit is used in transactions.
B) The FCIA provides coverage against commercial risks and political risks.
C) Private associations cannot offer export insurance in the United States.
D) Organizations do not receive coverage against political risks of global trade.

Question

Quizplus · Accepted Answer

In the United States, export credit insurance is provided by the Foreign Credit Insurance Association (FCIA), an association of private commercial institutions operating under the guidance of the Export-Import Bank. The FCIA provides coverage against commercial risks and political risks.

Which of the Following Statements Is True of Export Credit