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- 1. Multiple Choice
According to international practice, "at sight" normally means 5 days from the receipt of original documents.
True
False
- 2. Multiple Choice
Usuance payment term can be described as: (number of) days from____________________
Invoice date
Shipment date
Sight
All of above
- 3. Multiple Choice
A buyer bears highest risks under_____________ payment method:
LC
T/T Advance
OA
D/A
D/P
- 4. Multiple Choice
Under Document Against Acceptance (D/A) Collection, the import (collecting) bank is obligated to pay on due date if the impoter fails to do so.
False
True
- 5. Multiple Choice
Confirming bank is obligated to pay against clean document presentation on due dates if the issuing bank fails to do so.
False
True
- 6. Multiple Choice
Document presentation under LC, D/A & D/P usually happens after shipment as LC, D/A & D/P normally requires seller to present shipping documents (B/L, Airway Bill, Cargo Receipt, etc.)
False
True
- 7. Multiple Choice
Transferring bank's obligations are the same those of the confirming bank.
False
True
- 8. Multiple Choice
Seller may apply for (i) preshipment loans to fund material purchases and production activities, or (ii) postshipment finance to advance sales proceeds. However, the total loan value must not exceed the invoice value and postshipment finance will be used to repay preshipment loans (if any).
False
True
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