LC WIZARD

Which of the following types of LC cannot be amended or canceled without the consent of all parties involved?

• Revocable LC

• Irrevocable LC

• Transferable LC

• Standby LC

What does the term "partial shipment" refer to in the context of an LC?

• The LC allows for shipments to be made in more than one consignment

• The LC requires all goods to be shipped at once

• The LC allows for a portion of the payment to be made before shipment

• The LC mandates full payment upon sight of documents

Which document certifies the origin of the goods being shipped?

• Bill of lading

• Commercial invoice

• Certificate of origin

• Packing list

Which type of LC is specifically used to cover the buyer's performance obligations rather than payment for goods?

• Commercial LC

• Standby LC

• Transferable LC

• Revolving LC

Which type of LC can be transferred by the beneficiary to one or more second beneficiaries?

• Irrevocable LC

• Transferable LC

• Standby LC

• Revolving LC

What is the purpose of a "clean" LC?

• It ensures the payment is made only if the goods meet the specified standards

• It guarantees payment without the presentation of shipping documents

• It allows for partial shipments

• It requires a third party's confirmation

Which type of LC allows for multiple shipments within a specified period?

• Standby LC

• Transferable LC

• Revolving LC

• Red clause LC

What does the term "sight LC" refer to?

• Payment is made upon presentation of documents

• Payment is made after a fixed period

• Payment is made upon shipment of goods

• Payment is deferred until a later date

Which type of LC can be used to facilitate the financing of international trade transactions?

• Standby LC

• Transferable LC

• Back-to-back LC

• Deferred payment LC

Which type of LC is often used in construction contracts to guarantee the contractor's performance?

• Revolving LC

• Standby LC

• Transferable LC

• Red clause LC