IIP301: L/C_Procedure

There are _____ main parties to a basic documentary letter of credits transaction.

• four

• five

• six

• three

The Uniform Customs and Practice for Documentary Credits (UCP) was developed by a working committee attached to the International Chamber of Commerce (ICC) in ______.

• Moscow

• Paris

• London

• New York

In documentary credits, the date when the issuing bank is bound to be responsible for L/C amendment is determined:............. Select one:

• whenever the buyer or the seller has any issues.

• by any period before the opening of the first L/C.

• 7 working days from the date of the L/C amendment.

• from the date issuing amendment L/C.

When the exporter detects any additional amendments of the L/C, who should they contact first?

• the issuing bank

• the advising bank

• the importer

• the confirming bank

Who has to deposit to open importing L/C?

• the seller

• the buyer

• the issuing bank

• the advising bank

Availability refers to the availability of funds to the beneficiary (seller) after presentation of documents under the credit. Each of the forms of payment availability must be specified in the original credit and be accepted by the ___________.

• issuing bank

• advising bank

• exporter

• importer

In documentary credits, the party that pays for the credit value is:

• the advising bank

• the exporter

• the importer

• the issuing bank

Amendment in L/C is carried out by:................Select one:

• the correspondent bank

• the issuing bank

• the confirming bank

• the advising bank

In documentary credit payment, the bank plays an active role and commits the highest responsibility, not as a mere intermediary as in other payment methods.

• True

• False

Choose the correct statement:

• There are two primary means of settlement: settlement by payment and settlement by negotiation.

• There are three primary means of settlement: settlement by payment, settlement by acceptance, and settlement by negotiation.

• There is only one primary mean of settlement: settlement by payment.

• There are four primary means of settlement: settlement by payment, settlement by acceptance, settlement by negotiation and deferred settlement.