PAYMENT-QUIZZ

Which of the following is not a condition for drafts to be negotiable?

• must contain a promise to pay a certain sum if goods are received

• must contain an order to pay

• must be made out to order or bearer

• must be in writing, signed by the drawer

If a draft is made to bearer, payment should be made to ___

• A bank

• Drawer

• Anyone who presents the draft

• Acceptor

If a draft is accepted by a bank, it becomes a____

• Valid draft

• Banker’s acceptance

• Demand draft

• Drawee’s acceptance

Which of the following is not true of a letter of credit?

• Issued by a bank

• It is a document

• Payable in the designated currency

• At the request of the exporter

If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as___

• Revocable

• Revolving

• Irrevocable

• Unconfirmed

Transfer a bill or cheque by signing it on the back called Endorse

• True

• False

Bill of exchange that must be paid immediately it is presented:

• Debit note

• Sight draft

• Bank tranfer

Date by which an account should be settled

• Due date

• Days after sight

Method of payment by which the seller can give the buyer credit for an agreed period

• Bill of exchange

• Debit note

• Statement of account

• Promissory note

Document informing a customer of money owed

• Bad debt

• Debit note

• Sight draft

• Bill of exchange