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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Laquanda

6 months ago

I think using a bill of exchange is the most cost-effective method for small purchases.

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Kenneth

6 months ago

I prefer open account, it gives more flexibility and trust between buyer and seller.

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Jani

7 months ago

I disagree with that, I believe using a letter of credit is more secure for both parties.

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Yun

7 months ago

I think for small purchases, payment in advance would be the best option.

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Nickolas

7 months ago

But with Open account, there is higher risk for the seller.

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Jeanice

7 months ago

I would choose Open account because it allows for more flexibility in payment timings.

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Dominga

7 months ago

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

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Mabel

7 months ago

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

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Janella

8 months 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

8 months 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

8 months 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

8 months 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

8 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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Rikki

7 months ago

C) Open account

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Eladia

7 months ago

B) Letter of credit

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Erick

7 months ago

A) Payment in advance

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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:

Laquanda

Kenneth

Jani

Yun

Nickolas

Jeanice

Dominga

Mabel

Janella

Magda

Jamie

Jesusa

Eugene

Rikki

Eladia

Erick

Levi