___________________ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S. dollars and transfer them to the
Exporter.
A) Credit
B) Exchange
C) Transfer
D) Importer
E) Exporter

Question

Quizplus · Accepted Answer

Transfer risk refers to the risk associated with the transfer of funds between importers and exporters, particularly when the importer is unable to obtain the necessary foreign currency to make the payment. This risk is related to exchange risk, which is the risk associated with changes in exchange rates between the currencies of the importer and the exporter. However, transfer risk specifically relates to the ability of the importer to physically transfer the funds to the exporter, which can be impacted by factors such as government restrictions, banking regulations, and political instability.

___________________ Risk Refers to the Chances That Payment Will Not