International Payment | IP11
Exam Practice Test: L/Cs and Guarantees
Question 01:
In international trade, who is the party requesting the use of the wire transfer payment method
a. Importer
b. Exporter
c. Importer's bank
d. Exporter's bank
Question 02:
What is the deadline for the delivery of goods in the Back-to-Back L/C compared to the
original L/C?
a. Before
b. After
c. On the same day
d. Depending on the choice of the delivering party
Question 03:
In international commercial processing, which type of L/C can the parties apply?
a. Irrevocable credit
b. Confirmed credit
c. Reciprocal credit
d. Red clause credit
Question 04:
Who benefits from the payment guarantee for imported goods (XNK)?
a. Importer
b. Exporter
c. Importer's bank
d. Exporter's bank
Question 05:
The set of international commercial documents is prepared at the request of whom?
a. Exporter
b. Importer
c. Exporter's bank
d. Importer's bank
, Question 06:
Who is the party signing and issuing the Letter of Credit (L/C)?
a. Exporter
b. Notifying bank
c. Beneficiary
d. Authorized bank
Question 07:
Who benefits from a confirmed Letter of Credit (L/C)?
a. Importer
b. Exporter
c. Issuing bank
d. Notifying bank
Question 08:
Who is responsible for payment to the beneficiary in a Letter of Credit (L/C)?
a. Importer
b. Issuing bank
c. Notifying bank
Question 09:
If the Exporter does not deliver the goods but presents documents complying with the L/C
terms, how does the Issuing bank handle it?
a. Still make the payment
b. Do not make the payment
c. Make a 50% payment
d. Subject to the decision of the Issuing bank
Question 10:
What is the required date for presenting documents in a Letter of Credit (L/C) payment?
a. Before or on the same day of delivery
b. On the same day of delivery
c. After the day of delivery
d. Before or on the same day of L/C expiration
Question 11:
In CIF delivery terms on the Bill of Lading, how should the freight cost be indicated?
a. Freight to collect
Exam Practice Test: L/Cs and Guarantees
Question 01:
In international trade, who is the party requesting the use of the wire transfer payment method
a. Importer
b. Exporter
c. Importer's bank
d. Exporter's bank
Question 02:
What is the deadline for the delivery of goods in the Back-to-Back L/C compared to the
original L/C?
a. Before
b. After
c. On the same day
d. Depending on the choice of the delivering party
Question 03:
In international commercial processing, which type of L/C can the parties apply?
a. Irrevocable credit
b. Confirmed credit
c. Reciprocal credit
d. Red clause credit
Question 04:
Who benefits from the payment guarantee for imported goods (XNK)?
a. Importer
b. Exporter
c. Importer's bank
d. Exporter's bank
Question 05:
The set of international commercial documents is prepared at the request of whom?
a. Exporter
b. Importer
c. Exporter's bank
d. Importer's bank
, Question 06:
Who is the party signing and issuing the Letter of Credit (L/C)?
a. Exporter
b. Notifying bank
c. Beneficiary
d. Authorized bank
Question 07:
Who benefits from a confirmed Letter of Credit (L/C)?
a. Importer
b. Exporter
c. Issuing bank
d. Notifying bank
Question 08:
Who is responsible for payment to the beneficiary in a Letter of Credit (L/C)?
a. Importer
b. Issuing bank
c. Notifying bank
Question 09:
If the Exporter does not deliver the goods but presents documents complying with the L/C
terms, how does the Issuing bank handle it?
a. Still make the payment
b. Do not make the payment
c. Make a 50% payment
d. Subject to the decision of the Issuing bank
Question 10:
What is the required date for presenting documents in a Letter of Credit (L/C) payment?
a. Before or on the same day of delivery
b. On the same day of delivery
c. After the day of delivery
d. Before or on the same day of L/C expiration
Question 11:
In CIF delivery terms on the Bill of Lading, how should the freight cost be indicated?
a. Freight to collect
