International Finance Mock Test Questions with Answers

International Finance | S02.PQ2 | FTU

Q1. The risks of a bank serving an importer in collection and a documentary credit
are:
a. True
b. False

Q2. Amendments to a Letter of Credit (L/C) can only be made by the L/C issuing
bank.
a. True
b. False

Q3. The notification of amendments to the beneficiary in a letter of credit can only be
carried out by the issuing bank if the L/C stipulates:
a. True
b. False

Q4. On October 10, 2005, Bank A received a Bill of Exchange demanding payment
dated October 1, 2005, with a stipulated payment term of 30 days after sight. As the
issuing bank, Bank A must make the payment:
a. 30 days from October 1, 2005
b. 30 days from October 11, 2005

Q5. If an L/C allows document presentation at VCB (Vietcombank), and the
documents are presented at ICB (another bank), and ICB transfers the documents to
the L/C issuing bank to claim payment, and the issuing bank refuses to make the
payment:
a. True
b. False

Q6. In the collection method, the person signing the promissory note is:
a. Exporter
b. Importer
c. Bank

Q7. In a documentary credit, the party responsible for paying the promissory note is:
a. Exporter
b. Importer
c. Issuing bank

d. Confirming bank