Risks associated with documentary collection for exporters

 Which of the following parties receive documents for collection from the exporter?

•  Drawee

•  Principal

• Remitting bank

• Presenting bank

An exporter:

- sends the commercial invoice and transport documents directly to an importer

- sends the Bill of Exchange through the banking system for presentation to the importer

What is being described here?

• Documentary collection

• Clean collection.

• Neither A nor B.

What does the term D/P means in a documentary collection?

• Days paid

• Documents against payment

• Deferred payment

• Documents presented

The importer's bank is called the (a)  

 Which of the following is not a commercial document?

• Bill of exchange

• Bill of lading

•  Commercial invoice

• Packing list

An issuing bank is irrevocably bound by the terms of the amendment as of the time:

• The issuing bank issues the amendment

• The advising bank receives the amendment

•  The confirming bank agrees to confirm the amendment

•  The beneficiary receives the amendment

SWIFT stands for Question options:

• Southwestern International Fund Transfers.

•  Sales World Institutional Financial Telecommunications.

• Serving-the-World Institutional Financial Transactions.

• Society for Worldwide Institutional Transfers.

• Society for Worldwide Interbank Financial Telecommunication

An irrevocable letter of credit cannot be canceled by the issuing bank unless the applicant agrees to it ?

• True

• False

Which of the following statements is correct?

• In letter of credit operation all parties concerned deal with documents.

•  In letter of credit operation all parties concerned deal with performance and services.

• In letter of credit operation all parties concerned deal with goods and payment

 The instruction letter is part of the documentary collection

•  That is not recognized in the United States.

• In which the exporter, through the remitting bank, tells the presenting bank what it is expected to accomplish.

• That is not recognized in the European Union.

• All of the above

• None of the above