.wd.Chapter 5I. Select the best answer.1. In L/C business , the exporter can receive the payment only when ( )A. he has shipped the goodsB.he has presented the documentsC.the documents presented constitute a complying presentationD.the importer has taken delivery of the goods.2. In L/C business, the issuing bank can refuse to pay the credit amount when ()A.the applicant prevents him from making paymentB.the goods are not the same as those stipulated in the sales contractC.one kind of document required by L/C isnt presented.D.balance of the applicants account is not enough for payment .3. Of the following kinds of L/C, ( )is the L/C which requires no drafts at all.A.sight payment creditB.deferred payment creditC.acceptance creditD.negotiation credit4. Of the following kinds of L/C, ( ) is the L/C in which drafts are always required.A.sight payment creditB.deferred payment creditC.acceptance creditD.negotiation credit5. Of the following kinds of L/C, ( ) is the L/C which is especially suitable foruse to settle the payment of trade conducted through a middleman.A.non-transferable creditB.reciprocal creditC.revolving creditD.back to back credit6. Of the following kinds of L/C, ( )is the L/C which is especially suitable for use to settle the payment of trade conducted through a middleman.A. transferable creditB. reciprocal creditC. revolving creditD.confirmed credit7. Of the following kinds of L/C, ( ) is the L/C which is especially suitable for use to settle the payment under a long term contract covering goods to be transported by regular partial shipments.A.non-transferable creditB.reciprocal creditC.revolving creditD.back to back credit8.Of the following kinds of L/C, () is the L/C which is especially suitable for use to settle the payment under counter trade.A.non-transferable creditB.reciprocal creditC.revolving creditD.back to back credit9. Confirmation of a credit may be given by ( )A. the beneficiary at the request of the importerB. the advising bank at the request of the issuing bankC. the advising bank after the receipt of correct documentationD. the issuing bank after the receipt of correct documentation10. The credit may only be confirmed if it is so authorized or allowed by ( )A. the issuing bankB. the supplierC. the advising bankD. the beneficiary11. The second beneficiary of a transferable letter of credit is the ( )A. middlemanB. transferring bankC. the applicant of the transferred creditD. real supplier of the goods12. The first beneficiary of a transferable letter of credit is the ( )A. middlemanB. transferring bankC. the applicant of the transferred creditD. real supplier of the goods13. The red clause credit is often used as a method of ( )A. providing the buyer with funds prior to shipmentB. providing the seller with funds prior to shipmentC. providing the buyer with funds after shipmentD. providing the seller with funds after shipment14. An applicant must reimburse an issuing bank unless he finds that ( )A. goods are defectiveB. goods are not as ordered in the sales contractC. documents received do not allow him to clear the goods through customsD. documents do not conform on the face to the terms and conditions of the credit15. Application for any amendment to a letter of credit should be given to the issuing bank by ( )A. the applicantB. the beneficiaryC. the advising bankD. the nominated bank16. The message type which is used to send a amendment notice of a documentary credit through SWIFT is numbered ( )A. 700 B. 705 C. 707 D. 71017.Among all the financial methods mentioned bellow , which method provides funds without recourse ( )A. packing loansB. bill discountingC. forfaitingD. borrowing docs against T/R18.Under letter of credit, the primary debtor is the( )A. applicant B. importer C. issuing bank D. nominated bank19. The applicant of letter of credit is ( )A. the exporter B. the importer C. the exporter?s bank D. the importers bank20. The beneficiary of letter of credit is ( )A. the exporter B. the importer C. the exporter?s bank D. the importer?s bank21.A letter of credit which is expired on Oct. 1, 2008 specifies that “documents must be presented within 15days after the on board date of bill of lading. If the on board date of bill of lading is Sep. 10,2008, the latest date of presentation must be ( )A. Sep. 24 ,2008 B. Sep. 25 ,2008 C. Sep. 26 ,2008 D. Oct. 1, 200822. If there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least ( ) of the CIF or CIP value of the goods.A. 100% B.105% C. 110% D.120%23. Which of the following actions performed by the nominated bank is not regard as the action of honor( )A. to pay at sight under sight payment creditB. to incur a