Letter Of Credit Basic

15 Questions | Total Attempts: 1954

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Letter Of Credit Basic

This test consist of 15 multi question basic.


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Questions and Answers
  • 1. 
     As a seller I will consider the lowest risk methods of payments?
    • A. 

      Open Account

    • B. 

      Documentary Collections

    • C. 

      Letters of Credit

    • D. 

      Cash in Advance

  • 2. 
    • A. 

      2008

    • B. 

      2009

    • C. 

      2010

  • 3. 
    The ISBP publications amend UCP 600
    • A. 

      Yes

    • B. 

      NO

  • 4. 
    Complying presentation means a presentation that is:
    • A. 

      Within LC validity only

    • B. 

      Presenting of all shipping documents

    • C. 

      In accordance with LC terms & conditions

  • 5. 
    If the beneficiary is not happy with the terms & conditions of LC, he can ask applicant for:
    • A. 

      Fresh letter of credit (replacement)

    • B. 

      An amendment

    • C. 

      Applicant confirmation

  • 6. 
    Issuing bank is bound by a Letter of Credit The
    • A. 

      From the time of issue LC

    • B. 

      From the time the LC is advising by the Advising bank

    • C. 

      From the time LC is received by the beneficiary

  • 7. 
    Banking day means a day on which a bank is …………….at the place at which an act subject to these rules is to be performed.
    • A. 

      Regularly open for an act

    • B. 

      Start from Monday to Friday

    • C. 

      Normal days including Eid holiday

  • 8. 
    Nominated bank means the bank: 
    • A. 

      The bank that advise Letter of Credit

    • B. 

      The issuing bank

    • C. 

      LC available with

  • 9. 
    A credit can neither be amended nor cancelled without the agreement of the following Parties:
    • A. 

      The issuing bank & The confirming bank

    • B. 

      The confirming bank & The beneficiary

    • C. 

      The issuing, confirming bank & the beneficiary

  • 10. 
    Advising bank means the bank that advises the credit at the request of the………………
    • A. 

      The issuing bank

    • B. 

      The confirming bank

    • C. 

      The beneficiary

    • D. 

      The applicant

  • 11. 
    • A. 

      Five calendar days before until five calendar days after the specified date (both start and end dates included)

    • B. 

      Five calendar days before until five calendar days after the specified date (both start and end dates excluded)

    • C. 

      10 calendar days after the specified date (both start and end dates included)

  • 12. 
    Branches of a bank in different countries are considered to be ……………… 
    • A. 

      Separate banks.

    • B. 

      Same Banks

  • 13. 
    • A. 

      Any issuer including the beneficiary to issue that document.

    • B. 

      Any issuer except the beneficiary to issue that document.

    • C. 

      Any issuer to issue that document.

  • 14. 
    Words such as “prompt”, “immediately” will be:   
    • A. 

      One day

    • B. 

      One week

    • C. 

      Disregarded

  • 15. 
    The words “from” and “after” when used to determine a maturity date: 
    • A. 

      Exclude the date mentioned.

    • B. 

      Include the date mentioned.