Chap#11, Non Negotiable Instrument

Travellers cheques are only issued to ________________________

• PLS saving account holders

• PLS fixed account holders

• Travellers having any account

• Current account holders

Which document is required to be completed to open commercial letter of credit?

• Sales agreement

• Import licence and Performa invoice

• Application form

• All of these

In _____________________ bank gives loan not only for packing, transportation but also for storage.

• Red clause

• Green clause

• Revocable letter of credit

• None of these

Letter of credit is opened by the ________________________

• Importer's bank

• Exporter's bank

• Agent

• Dealer

The payment of _____________________________ is confirmed because bank or trader cannot cancel it before payment.

• Revocable letter of credit

• Irrevocable letter of credit

• Fixed LC

• Revolving LC

Commercial letter of credit is used for_______________________

• International trade

• National trade

• Opening of an account

• Issuing travellers cheque

Which of the following credit instrument is NOT used to finance the people who want to travel abroad?

• Traveller's letter of credit

• Travellers cheque

• Circular note

• Promissory note

What does "IOU" mean?

• I am debtor to you

• I am creditor to you

• Both A and B

• None of these

Which of the following letter of credit is cancelled by the issuing bank without the consent of the other parties?

• Revocable letter of credit

• Irrevocable letter of credit

• Revolving letter of credit

• None of these

Types of Bill of Exchange are

• According to Issue, According to Objective

• Trade bill, Accommodation Bill of Exchange

• Sight Bill, Time Bill

• All of them