IIP301 full|Ques ons and answers | Updated RATED A+
2026
Basic Terms of Payment are:
a. Cash in Advance, Documentary Credit, Documentary Collec ons
b. Cash in Advance, Documentary Collec ons, Open Account
c. Cash in Advance, Documentary Credit, Open Account
d. Cash in Advance, Documentary Credit, Documentary Collec ons, Open Account
d
____describes the procedure in documentary credit for the goods, the transfer from seller to
the buyer through the banks and the transfers of the payment from the buyer to the seller
through the banks (se$lement)
a. Issuance
b. U liza on
c. Se$lement
d. Amendment
b
Which document is issued by the government authority of a country gran ng the right to export
a specific quan ty of a commodity to a specific country?
a. Country of origin
b. Inspec on cer fica on
c. Packing list
d. Export license
d
___is a transport document covering port-to-port shipments. It is not a tle document, is not
nego able and cannot be endorsed.
a. Export license
b. Charter Party Bill of lading
c. A marine bill of lading
d. A non-nego a on sea waybill
d
,In a documentary credit the ___ specifies the documenta on required from the ___ before the
___ is to make payment and the seller is given assurance that payment will be made a2er
shipping the goods as long as the document is in order.
a. seller, buyer, bank
b. Buyer, seller, bank
c. bank, seller, buyer
d. Buyer, bank, seller
b
In a sales contract between a seller and a buyer, open account payments are made either by
bank dra2 or check or through a wire payment to the bank account specified by the___
a. Exporter
b. Importer
c. Freight forward
d. Customs broker
a
Which of the following is true about export license?
a. It is o2en required for the exporta on of certain natural resources, na onal treasures, drugs,
strategic commodi es, and arms armaments.
b. The export license of each country will have its own form and content
c. All of the others
d. It is document prepared by a government authority of a na on gran ng the right to export a
specific quan ty of a commodity to a specified country.
c
A_________________is similar to an interna onal cash on delivery (COD). The seller ships
goods to the buyer but sends the documents, including the bill of lading ( tle document),
through the banks with instruc ons to release them to the buyer only upon payment.
a. documentary collec on
b. le$er of credit
c. Cash in advance
d. Open account
a
In documentary collec on, the seller (principal) prepares and presents (remits) a document
package to his bank (the remi4ng bank) consis ng of
a. a collec on order specifying the terms and condi ons under which the bank is to hand over
, documents to the buyer anf receive payment
b. the nego able transport document (bill of lading)
c. other documents (e.g., insurance document, cer ficate of origin, inspec on cer ficate, etc.)
as required by the buyer
d. All of these
d
As defined in Uniform Rules for Collec on URC522, the bank that is responsible for making the
documents available to the drawee is known as:
a. The remi4ng bank
b. The collec ng bank
c. The confirming bank
d. The reimbursing bank
b
Which of the following statements is true in CFR (Incoterm 2010)?
a. The seller must clear for import in buyer's country
b. The seller has an obliga on to cover insurance of the goods
c. Seller must pay the costs and freight necessary to bring the goods to the named port of
des na on, but the risks of loss or damage, as well as any addi onal costs due to events
occurring a2er the me of deliver, are transferred from seller to buyer.
d. The seller must take the risks of loss or damage un l the goods arrived at port of des na on.
c
Which does the seller have obliga ons to do under FOB Incoterm 2010?
a. Clear the goods for export
b. Place the goods alongside the vessel at the port of shipment
c. Buy insurance for the goods during transporta on
d. Clear the goods for import
a
An irrevocable unconfirmed documentary credit conveys a commitment by
___________________ to honor dra2s or documents as presented by the beneficiary of the
credit
a. The issuing bank
b. The confirming bank
c. Both issuing bank and confirming bank
d. None of these
2026
Basic Terms of Payment are:
a. Cash in Advance, Documentary Credit, Documentary Collec ons
b. Cash in Advance, Documentary Collec ons, Open Account
c. Cash in Advance, Documentary Credit, Open Account
d. Cash in Advance, Documentary Credit, Documentary Collec ons, Open Account
d
____describes the procedure in documentary credit for the goods, the transfer from seller to
the buyer through the banks and the transfers of the payment from the buyer to the seller
through the banks (se$lement)
a. Issuance
b. U liza on
c. Se$lement
d. Amendment
b
Which document is issued by the government authority of a country gran ng the right to export
a specific quan ty of a commodity to a specific country?
a. Country of origin
b. Inspec on cer fica on
c. Packing list
d. Export license
d
___is a transport document covering port-to-port shipments. It is not a tle document, is not
nego able and cannot be endorsed.
a. Export license
b. Charter Party Bill of lading
c. A marine bill of lading
d. A non-nego a on sea waybill
d
,In a documentary credit the ___ specifies the documenta on required from the ___ before the
___ is to make payment and the seller is given assurance that payment will be made a2er
shipping the goods as long as the document is in order.
a. seller, buyer, bank
b. Buyer, seller, bank
c. bank, seller, buyer
d. Buyer, bank, seller
b
In a sales contract between a seller and a buyer, open account payments are made either by
bank dra2 or check or through a wire payment to the bank account specified by the___
a. Exporter
b. Importer
c. Freight forward
d. Customs broker
a
Which of the following is true about export license?
a. It is o2en required for the exporta on of certain natural resources, na onal treasures, drugs,
strategic commodi es, and arms armaments.
b. The export license of each country will have its own form and content
c. All of the others
d. It is document prepared by a government authority of a na on gran ng the right to export a
specific quan ty of a commodity to a specified country.
c
A_________________is similar to an interna onal cash on delivery (COD). The seller ships
goods to the buyer but sends the documents, including the bill of lading ( tle document),
through the banks with instruc ons to release them to the buyer only upon payment.
a. documentary collec on
b. le$er of credit
c. Cash in advance
d. Open account
a
In documentary collec on, the seller (principal) prepares and presents (remits) a document
package to his bank (the remi4ng bank) consis ng of
a. a collec on order specifying the terms and condi ons under which the bank is to hand over
, documents to the buyer anf receive payment
b. the nego able transport document (bill of lading)
c. other documents (e.g., insurance document, cer ficate of origin, inspec on cer ficate, etc.)
as required by the buyer
d. All of these
d
As defined in Uniform Rules for Collec on URC522, the bank that is responsible for making the
documents available to the drawee is known as:
a. The remi4ng bank
b. The collec ng bank
c. The confirming bank
d. The reimbursing bank
b
Which of the following statements is true in CFR (Incoterm 2010)?
a. The seller must clear for import in buyer's country
b. The seller has an obliga on to cover insurance of the goods
c. Seller must pay the costs and freight necessary to bring the goods to the named port of
des na on, but the risks of loss or damage, as well as any addi onal costs due to events
occurring a2er the me of deliver, are transferred from seller to buyer.
d. The seller must take the risks of loss or damage un l the goods arrived at port of des na on.
c
Which does the seller have obliga ons to do under FOB Incoterm 2010?
a. Clear the goods for export
b. Place the goods alongside the vessel at the port of shipment
c. Buy insurance for the goods during transporta on
d. Clear the goods for import
a
An irrevocable unconfirmed documentary credit conveys a commitment by
___________________ to honor dra2s or documents as presented by the beneficiary of the
credit
a. The issuing bank
b. The confirming bank
c. Both issuing bank and confirming bank
d. None of these
