DOCUMENTARY CREDIT

How many groups of risks are there in L/C?

• 3

• 5

• 4

• 8

How many steps are there in the documentation process?

• 3

• 5

• 2

• 4

What do the terms and conditions of a documentary credit revolve?

• 1. the presentation of documents that evidence title to goods shipped by the seller

• payment

• Both A&B are correct

• Both A&B are not correct

What are documentary credits also known as?

• Letter of credits

• Documentary letters

• Both A&B are correct

• Both A&B are not correct

How many types of credits are there in standard documentary credits?

• 4

• 5

• 2

• 3

What is irrevocable documentary credit?

• • noncancellable by the buyer, the most popular variation for sellers

• • a second bank, in addition to the buyer’s bank, guarantees payment

• • payment guaranteed only by the issuing bank

• • the buyer maybe cancel

In these 4 types of credits, which one is specialized credits?

• Confirmed documentary credit

• • Revolving credits

• Irrevocable documentary credit

• Unconfirmed documentary credit

What does UCP stand for?

• Uniform Customs and Practice for Documentary Credits

• Uniform Customs and Principles for Documentary Credits

• Uniform Classics and Practice for Documentary Credits

• Uniform Customs and Programmes for Documentary Credits

"The exporter’s bank sends the documents to the importer’s bank."Which step is it in documentation process?

• First

• Third

• Fourth

• Second

• Fifth

"mass riots, civil war, boycott, sovereign risk and transfer risk": Which types of risk are they?

• Country risk

• Fraud Risk

• Risks to the Banks

• Risks to the Beneficiary