International Settlement Test__ 3(1)

国际支付与结算英文版试题和答案

International Settlement Test 3

Ⅰ. Define the following terms.(16%)

1. letter of credit

2. irrevocable credit

3. confirming bank

4.negotiating bank

Ⅱ. Decide whether the following statements are true or false.(20%)

1. A letter of credit places a bank’s credit instead of a commercial credit, so the beneficiary has no risks to get payment. ( f )

2. The issuing bank can’t dishonor the documentary bill when the documents are complied with the terms and conditions of the credit whereas the goods are not complied with the contract. ( T )

3. A commercial invoice is a statement describing the merchandise, its cost, and shipping charges. ( T )

4. The main responsibility of banks under L/C is to examine each document presented to see whether it appears on the face to be in compliance with the credit terms.( T )

5.An irrevocable credit cannot be amended, revoked or cancelled. ( F )

6. Instructions for the issuance of a credit, the credit itself, instructions for an amendment thereto, and the amendment itself, must be complete ,precise and not include excessive detail. ( T )

7. When the issuing bank nominating another bank to advise the credit, the latter can select to advise the credit or select not to advise the credit. ( T )

8. When a bank decides to advise the credit, it shall take reasonable care to check the apparent authenticity of the credit which it advise. ( T )

9. A revocable credit can be cancelled or amended by the issuing bank at any moment and without prior notice to the beneficiary.( F )

10. When the issuing bank adds the word “confirm” in the credit, it means the credit is confirmed by the issuing bank, then the issuing bank becomes the confirming bank. ( F )

11. The bill of lading is evidence of the contract of carriage between the applicant and e carrier. ( F )

12. Banks deal exclusively with documents means they are not in a position to verify whether the goods supplied are actually identical with those specified in the credit. ( T )

13. Unless otherwise stipulated in the credit, a transferable credit can be transferred only once. T )

14. The bank will accept the bill of lading indicated with the notation as “on board” or “on deck”. ( F )

15. The beneficiary of a transferred credit is the middleman. ( F )

16.The applicant is liable for repayment of the advances if the beneficiary failed to present the documents called for under the red clause credit. ( T )

国际支付与结算英文版试题和答案

17. If an issuing bank increases the amount from USD20,000.00 to USD25,000.00, the issuing bank shall be irrevocably bound by the amendment by it , the confirming bank may extend its confirmation to the amendment or not extend its confirmation to the amendment. ( T )

18. The issuing bank, the confirming bank, or nominated bank shall each have a reasonable time, not to exceed 3 days following the day of receipt of the documents, to examine the documents. ( F )

19. A bank will not accept a cover note. ( T )

20.A bill of lading that bears a wording “bale broken” is an unclean bill of lading. (T )

Ⅲ. Choose the best answers to each of the following question.(20%)

1. The drawee under a credit can be（ BCDE ）.

A. negotiating bank B. issuing bank C. paying bank

D. accepting bank E. cofirming bank

2.When examing the documents under credit, the principles involved include（ABCD ）.

A. banks deal exclusively with documents

B. banks observe the rule of “strict compliance”

C. banks assume no responsibility for authenticity, form or validity of the documents

D. banks assume no responsibility for the act of the third parites taking part in the credit operations

E. banks take secondary liability

3. When there is a middleman in international trade, the available credit are ( BD ).

A. reciprocal credit B. back-to-back credit C. negotiation credit

D. transferable credit E. revolving credit

4. (ABCD ) need to examine the documents before payment.

A. Issuing bank B. Negotiating bank C. Paying bank

D. Accepting bank E. Reimbursing bank

5. When it is dishonored by the issuing bank, (ACDE ) don’t have the right of recourse to the beneficiary.( )

A. confirming bank B. negotiating bank C. paying bank

D. accepting bank E.deferred paying bank

6. The middleman has the right to substitute the ( CD ) in back-to-back credit.

A. bill of lading B. insurance document C. commercial invoice

D. draft E. certificate of origin

7. When buyers apply to open a credit, they must obey the rules as ( ABC ).

A. refer to documents only B. be clear concise

C. do not specify impossible documentation

国际支付与结算英文版试题和答案

D. have adequate funds in his account E. on commercial basis

8. As precautionary measure, security arrangement may take the following forms ( ABC ).

A. margins B. line of credit C. third party guarantee

D. application for credit E. confirmation

9. The functions of a bill of lading are ( ABCD ).

A. as a receipt of the goods B. as evidence of the contract for carriage

C. as a quasi-negotiable document D. as document of title

E. as a key accounting document

10. When beneficiary presents the documentation to the bank, the principle involved （ ABC ）.

A. completeness B. correctness C. consistency

D. standard E. simple

Ⅳ. Analyze the principles and cases in international settlements and give your opinion. (24%)

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