Unit 6 ESP231

Front

   The mode of payment in which a bank acts as an intermediary without accepting financial risk is called

Back

Documentary collection

Front

A document ordering an importer to pay an exporter a specified sum or money at a specified time is called (an)_______

Back

Draft (Bill of exchange)

Front

The mode of payment in which the importer's bank issues a document stating that the bank will pay exporter when the exporter fulfills the terms of the document is called a (an)

Back

Letter of Credit (L/C)

Front

A contract between the exporter and carrier that specifies destination and shipping costs of the merchant is called a(n)________.

Back

 Bill of Lading

Front

The mode of payment in which an exporter ships merchandise and later  bills the importer is called

Back

Open account

Front

The mode of payment in which an importer pays an exporter for merchandise before it is shipped

Back

Advance Payment

Front

______ is a letter of credit under which the documents are forwarded to the importer's bank, while sight draft is presented at a later future date.

Back

Deferred payment letter of credit

Front

______ is a letter of credit permitting the beneficiary to receive a sum prior to shipment

Back

Red clause letter of credit

Front

______ is a letter of credit that can be utilized by someone designated by the original beneficiary

Back

Transferable letter of credit

Front

______ is a letter of credit calling for renewed credit to be made available when the issuing bank informs the beneficiary that the buyer has reimbursed the issuing bank for the drafts already drawn

Back

Revolving letter of credit