Credit Instruments

Bank draft has __________ Parties

• 2

• 4

• 6

• 3

Following credit Instrument is Non negotiable

• Cheque

• Bank Draft

• Letter of Credit

• Bill of Exchange

Following credit Instrument is negotiable

• Cheque

• Bank Draft

• Bill of Exchange

• Promissory Note

• All of them

________ instruments Never Bounce back

• Cheque

• Bank Draft

• Bill of Exchange

• Promissory Note

Promissory note is written by ________

• creditor

• Debtor

• Exporter

• Banker

The bill is drawn to fulfill the temporary need for money, so there is no question of retaining this bill by the drawer until the due date.

• Sight Bill

• Time Bill

• Trade Bill

• Accommodation Bill

Kinds of LC are

• Commercial / Personal

• Revocable / Irrevocable

• Green / Red

• Confirmed / Unconfirmed

L/C that does not require any document other than a Bill of Exchange ______

• Confirmed

• Special

• Documentary

• Clean

One LC, one shipment

• Confirmed

• Special

• Fixed

• Revolving

Advising bank, intermediary bank / notifying Bank is restricted in LC

• Fixed

• Revolving

• Special

• Confirmed