Question

    In export credit, which of the following risks is

    typically NOT covered by an Export Credit Guarantee Corporation (ECGC) policy?
    A Insolvency of the buyer Correct Answer Incorrect Answer
    B Political risk due to war Correct Answer Incorrect Answer
    C Exchange rate fluctuation losses Correct Answer Incorrect Answer
    D Default in payment after shipment Correct Answer Incorrect Answer
    E Restriction on remittance by importing country Correct Answer Incorrect Answer

    Solution

    ECGC does not cover market risk like exchange rate changes. It mainly covers commercial and political risks.

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