Mcq International Payments

Only available on StudyMode
  • Download(s) : 42
  • Published : April 21, 2013
Open Document
Text Preview
1. In the case of a “sight draft”
A. the draft acceptance is after the shipment of goods
B. the draft is presented to the buyer for acceptance when the shipment has been made C. the risk for the importer consists in the disposal of the unpaid goods D. the goods are available to the buyer before payment

2. It is not a bank draft
A. promissory note
B. checks
C. money orders
D. bill of exchange
E. documentary collections

3. B/E represents:
A. unconditional order in writing to pay a specified amount of money to a specified person or to the bearer, upon presentation of the bill at a specified future date B. an order given to the bank in order to pay a specific amount to a person from the company current account against the presented bill C. an order given by a person to its bank in order to pay a specific amount directly in the beneficiary’s account D. a written promise to pay a determinate sum of money made between two parties

4. This is not a benefit for the importer when he use a payment based on the letter of credit: A. reliance on issuing bank’s credit rather than buyer’s B. documentary evidence that the ordered goods have been shipped on time C. payment deferred until goods are shipped and documents presented D. assurance that necessary clearance documents will be provided

5. A clean L/C means that:
A. the L/C can not be revoked without the specific permission of all parties involved, including the exporter B. the L/C is issued by a bank and confirmed by another, obligating both banks to honor drafts drawn in compliance C. the place where the payment is realized by the exporter bank D. the documents are presented without other additional documents or notifications

6. In the case of open account payment
A. the goods available to buyers before payment
B. the risk belongs to the importer
C. the goods are shipped to a buyer with a strong guarantee of payment D. the goods are available to buyers after payment

7. “Consignment” means that:
A. the exporter retains actual title to the goods that are shipped to the importer B. an order given to a bank in order to pay a specific amount to a person from the company current account C. the goods will not be shipped until the buyer has paid the seller D. the goods are shipped to a buyer without guarantee of payment

8. The chief advantage in case of advance payment is:
A. no credit extension required
B. capital tied up until sales; must establish distributor’s creditworthiness need political risk insurance in some countries; increased risk from currency controls C. if customer does not or cannot accept goods, goods remain at port of entry and no payment is due D. lowers customer resistance by allowing extended payment after receipt of goods

9. The difference between a P-note and B/E consists on:
A. the amount of money is well determined
B. the maker of a P-note to personally pay the payee rather than ordering a third party to do so C. the P-note is more secure than a B/E
D. the issuer of a P-note is the exporter

10. The highest risk is in case of:
A. sight draft
B. time draft
C. cash in advance
D. revocable L/C
E. open account

11. International payments
A. require common payment procedures
B. are always guaranteed by a different bank
C. are less risky
D. are more complex than local payments

12. Open account payments mean that:
A. the exporter retains actual title to the goods that are shipped to the importer B. the goods will not be shipped until the buyer has paid the seller C. the goods are shipped to a buyer without guarantee of payment D. an order given to a bank in order to pay a specific amount to a person from the company current account

13. In the case of a letter of credit this is not an advantage for the exporter A. Reliance on issuing bank’s credit rather than buyer’s B. Payment protection
C. Rapid, local source of repayment, if payable at a local bank D. Payment deferred until goods are shipped and documents...
tracking img