International Payment Practice Questions with Answers: L/Cs and Guarantees

International Payment | IP01
Practice Test: Bills of Exchange, Risk Mitigation, and Payment
Documentation

Question 01:

The person signing the Bill of Exchange (B/E) is:
a. Bank
b. Exporter
c. Depending on the use of the B/E

Question 02:

To limit risks in collection, the exporter should choose a clean bill of exchange:
a. True
b. False

Question 03:

In credit transactions, all relevant parties transact based on:
a. Documents
b. Goods, services
c. Other transactions related to documents

Question 04:

The currency used for calculation and payment in the international trade contract must
be a freely convertible foreign currency:
a. True
b. False

Question 05:

In collection, the party obligated to pay the bill of exchange is:
a. Exporter
b. Importer
c. Bank

Question 06:

In collection, the person signing the post-acceptance bill of exchange is:

, a. Exporter
b. Importer
c. Bank

Question 07:

The remitting bank must check the content of the documents in the collection
instruction:
a. True
b. False

Question 08:

International payment documents are prepared by:
a. Exporter
b. Importer
c. Export-Import Bank
d. Importer's Bank

Question 09:

If the shipping document indicates "Freight prepaid," it signifies the basis of delivery
as:
a. FOB
b. FAS
c. CIF
d. EXW

Question 10:

In a sea bill of lading, the notation "Freight to collect" indicates the basis for
delivering the goods as:
a. FOB
b. CIF
c. C&F
d. CPT

Question 11:

In international trade, which type of bill of exchange is commonly used?
a. Sight, named