College of Business & Economics Model: MIS
Banking & Finance department lecturer; Dr. Ghazi Mamandi
Stage: fourth Academic year 2021-2022
Questions for Ch: letter of credit
Q1: Explain (in eight sentences) Benefit of letter of credit for exporter.
Q2: Explain (in eight sentences) Benefit of letter of credit for importer .
Q3 : Explain ( in eight sentences ) why use letter of credit .
Q4 : Explain ( in eight sentences ) letter of credit .
Q5 : Explain as a sight Letter of Credit.
Q6- Explain a step-by-step description of a typical Letter of Credit transaction.
Q7- Draw a diagram show Issuance letter of credit.
Q8-Explain (in eight sentences) that Banks deal with documents not with Goods.
Q9: Explain advantage and disadvantage of letter of credit.
Q10; Fill blankets with suitable words
A- For exporters, any sale is a gift until ……………………………. is received
B- For importers, any payment is a ………………………….. until the goods are ……………………
C- ……………………………………… open doors to ………………………………… by providing a secure
mechanism for payment upon fulfilment of contractual …………………………
D- The ……………………………………….. undertakes to make payment, provided all the terms and
conditions stipulated in the ………………………………………… are complied with.
E- Payment will only be made to the ……………………………… when the terms and conditions
of the …………………………………………. are complied with
F- the buyer and the seller do not know each other well enough – the other party is
……………………………, the cooperation experience is short-term and the …………………is little
G- 3-the …………………………… of one or another country requires the use of the LC
H- A letter of credit is a written undertaking given by a bank on behalf of the customer to
pay the ………………………………… an amount of money within a ……………………………..time
frame provided that the exporter complies strictly with its terms and conditions.
I- Payment will depend on the exporter presenting …………………………… that conform to the
terms laid down in the …………………………….
J- The customer’s aim is that he should get the ………………….. that he has ordered, and the
exporter’s aim is to ……………………………. payment for them
K- A Letter of Credit, simply defined, is a written …………………….. issued by a bank at the
request of its customer, the …………………………… whereby the bank promises to pay the
………………………………………for goods or services, provided that the Exporter presents all
documents called for, exactly as stipulated in the Letter of Credit, and meet all other
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Banking & Finance department lecturer; Dr. Ghazi Mamandi
Stage: fourth Academic year 2021-2022
Questions for Ch: letter of credit
Q1: Explain (in eight sentences) Benefit of letter of credit for exporter.
Q2: Explain (in eight sentences) Benefit of letter of credit for importer .
Q3 : Explain ( in eight sentences ) why use letter of credit .
Q4 : Explain ( in eight sentences ) letter of credit .
Q5 : Explain as a sight Letter of Credit.
Q6- Explain a step-by-step description of a typical Letter of Credit transaction.
Q7- Draw a diagram show Issuance letter of credit.
Q8-Explain (in eight sentences) that Banks deal with documents not with Goods.
Q9: Explain advantage and disadvantage of letter of credit.
Q10; Fill blankets with suitable words
A- For exporters, any sale is a gift until ……………………………. is received
B- For importers, any payment is a ………………………….. until the goods are ……………………
C- ……………………………………… open doors to ………………………………… by providing a secure
mechanism for payment upon fulfilment of contractual …………………………
D- The ……………………………………….. undertakes to make payment, provided all the terms and
conditions stipulated in the ………………………………………… are complied with.
E- Payment will only be made to the ……………………………… when the terms and conditions
of the …………………………………………. are complied with
F- the buyer and the seller do not know each other well enough – the other party is
……………………………, the cooperation experience is short-term and the …………………is little
G- 3-the …………………………… of one or another country requires the use of the LC
H- A letter of credit is a written undertaking given by a bank on behalf of the customer to
pay the ………………………………… an amount of money within a ……………………………..time
frame provided that the exporter complies strictly with its terms and conditions.
I- Payment will depend on the exporter presenting …………………………… that conform to the
terms laid down in the …………………………….
J- The customer’s aim is that he should get the ………………….. that he has ordered, and the
exporter’s aim is to ……………………………. payment for them
K- A Letter of Credit, simply defined, is a written …………………….. issued by a bank at the
request of its customer, the …………………………… whereby the bank promises to pay the
………………………………………for goods or services, provided that the Exporter presents all
documents called for, exactly as stipulated in the Letter of Credit, and meet all other
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