Methods

What is the most secure payment method for the exporter?

• open account

• letter of credit

• advance payment

• bills for collection

What is the least secure payment method for the exporter?

• open account

• letter of credit

• advance payment

• bills for collection

What are shipping documents?

• bills of exchange

• bills of lading

• proforma invoices

• receipts

What is a D/A transaction?

• documents against payment transaction

• documents against acceptance transaction

• delivered at place transaction

• term draft transaction

What is a D/P transaction?

• sight bill transaction

• documents against payment transaction

• documents against acceptance transaction

• delivered at address transaction

The issuing bank

• is the exporter's bank

• is the advising bank

• is the importer's bank

• is the confirming bank

The confirming bank

• pays the importer

• pays the exporter

• issues the letter of credit

• accepts the letter of credit

What is a sight draft?

• a draft of a contract

• a bill payable at some future time

• a bill payable on demand

• a bill payable in 30 days

What is a term draft?

• a bill payable on demand

• a bill payable at some future time

• an invoice

• a shipping document

What is a bill of lading?

• a document of title

• a document necessary to board a plane

• a bill payable at sight

• a bill to land