by alex
Mastering trade terms is crucial for anyone involved in the global marketplace. This quiz will challenge your understanding of key concepts and terminology used in trade, from Incoterms to trade agreements. Sharpen your skills and see how well you know the language of international commerce!
Trade Terms Quiz Questions Overview
1. What does the term ‘Incoterms’ stand for?
International Commercial Terms
International Contract Terms
International Commerce Terms
International Company Terms
2. Which Incoterm means that the seller delivers when the goods are placed alongside the vessel?
FOB (Free On Board)
CIF (Cost, Insurance, and Freight)
FAS (Free Alongside Ship)
DAP (Delivered At Place)
3. What is the primary purpose of a Bill of Lading?
To serve as a receipt for the goods
To provide insurance for the goods
To define the price of the goods
To act as a trade agreement
4. Which of the following is NOT a type of trade barrier?
Tariffs
Quotas
Subsidies
Freight charges
5. What does the term ‘FOB’ stand for in trade?
Free On Board
Freight On Board
Free Of Board
Freight Of Board
6. What is a ‘tariff’ in the context of international trade?
A tax on imports or exports
A type of trade agreement
A shipping document
A trade barrier that limits quantity
7. Which organization is primarily responsible for regulating international trade?
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
United Nations (UN)
8. What does ‘CIF’ stand for in trade terms?
Cost, Insurance, and Freight
Cost, Insurance, and Finance
Cost, Import, and Freight
Cost, Import, and Finance
9. Which trade term indicates that the seller has fulfilled their obligation when the goods are made available at their premises?
EXW (Ex Works)
DDP (Delivered Duty Paid)
CPT (Carriage Paid To)
DAP (Delivered At Place)
10. What is the primary function of a Letter of Credit in trade?
To guarantee payment to the seller
To provide a shipping schedule
To offer insurance for the goods
To act as a trade license
