<<12345678910111213141516>> 1. In a Letter of Credit (LC) transaction, which party issues an irrevocable undertaking on behalf of the importer or buyer in favor of the exporter or seller?The advising bankThe confirming bankThe negotiating/nominated bankThe opening bankQuestion 1 of 16 2. What is the primary purpose of a "Red Clause" Letter of Credit (LC)?To provide credit to the importer/buyer for future purchasesTo allow the importer/buyer to draw advance amounts under the LCTo facilitate the negotiation of documents between the banks involvedTo provide financing to the exporter/seller for manufacturing or purchasing goodsQuestion 2 of 16 3. What is a distinguishing feature of a "Green Clause" Letter of Credit (LC)?It allows the importer/buyer to draw advance amounts under the LCIt provides financing to the exporter/seller for manufacturing or purchasing goodsIt requires proof that the goods to be shipped have been warehousedIt facilitates the negotiation of documents between the banks involvedQuestion 3 of 16 4. Who appointed a Task Force to undertake the revision of UCP 500?ICC IndiaICC ParisICC Banking CommissionICC Consultative GroupQuestion 4 of 16 5. What does DOCDEX stand for?International Documentary Dispute ResolutionICC's Document Dispute ExpertiseICC's Documentary Credit Dispute Resolution ExpertiseDocument Dispute Resolution CommitteeQuestion 5 of 16 6. When did the ICC Banking Commission approve the draft of UCP 600?1st July 200725th October 20061st July 200625th October 2007Question 6 of 16 7. Back to Back LC isIC opened on the backing of an Export order.LC opened on the backing of an Import orderLC opened on the backing of an Export LC.LC opened on the backing of an Import IC.Question 7 of 16 8. UCPDC 600 isSet of rules applicable to CC transactions.Set of rule having 500 articles.Set of rules framed by ICC governing LC business globally.Set of universally applicable rules governing [C business in India only.Question 8 of 16 9. ICC is:The issuer of the LC under UCPDC.The trade body governing the UCPDC rules.A Trade body for Indian exporters helping to increase exports.The confirming bank, which governs rules for LC drawn under UCPDC.Question 9 of 16 10. In an LC transaction, following parties are not involvedthe exporter.the issuing bank.the advising bank.the opening banks representative office in beneficiary's country, who helps source business for the issuing bank.Question 10 of 16 11. Bill of entry is required to show thatthe goods have been exported out of the country.the invoice contains fair price and there is no over/under invoicing.the goods have come into the country of import.the importer has paid the import bill.Question 11 of 16 12. The incoterms which confirms that the price of the goods is inclusive of Insurance and Freight upto the port of destination, is calledC&FCIF???CFIQuestion 12 of 16 13. What has contributed to the manifold increase in international trade under Letter of Credit?Introduction of new LC typesStrict regulations imposed by UCPDCDetailed guidelines specified by UCPDCDecrease in cross-border trade volumeQuestion 13 of 16 14. Which type of LC is the most commonly used?Irrevocable LCRevocable LCConfirmed LCTransferable LCQuestion 14 of 16 15. What role do ISP and URR play in LC transactions?They specify detailed guidelines on LC typesThey eliminate disputes between parties in LC transactionsThey explain practices and procedures for Stand-by LCs and reimbursementsThey provide comfort to exporters and importers in LC transactionsQuestion 15 of 16 16. How has proper handling of documents and transactions affected faith in LC transactions?Increased risksDecreased cross-border tradeGrowth of faith in LC transactionsIntroduction of new LC typesQuestion 16 of 16 Loading...
