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ISLAMIC TRADE FINANCING

Total questions: 12

Worksheet time: 29mins

Name
Class
Date
1.

The two types of method settlement is cash advance and close account.

a)

TRUE

b)

FALSE

2.

In Al-musharakah concept of letter of credit the bank acts as a partners.

a)

TRUE

b)

FALSE

3.

Which of the followings is NOT Shariah principle of letter of credit?

a)

Al-Wakalah

b)

Al-Musharakah

c)

Al-kafalah

d)

Al-Murabahah

4.

In the shipping guarantee, the buyer or customer uses it as a replacement for ______________.

a)

Bil of lading

b)

Bill of exchange

c)

Acceptance bill

d)

All the answer

5.

Which of the following is NOT essentially things in INCOTERMS ?

a)

Health

b)

Risk

c)

Cost

d)

Responsibility

6.

Which of the following terms is the seller will be required to deliver good to a carrier appointed by the buyer ?

a)

E terms

b)

F terms

c)

C terms

d)

D terms

7.

Which of the following terms is the seller will make good available to the buyer on the seller’s own premises ?

a)

E terms

b)

F terms

c)

C terms

d)

D terms

8.

Which of the following terms is the seller bear all cost and risks until the goods arrive to buyer destination ?

a)

E terms

b)

F terms

c)

C terms

d)

D terms

9.

Which of the following terms is the seller required to contract for the carriage ?

a)

E terms

b)

F terms

c)

C terms

d)

D terms

10.

Which of the following is NOT the benefit of using INCOTERMS?

a)

Business Standardized

b)

Avoid documentation from delay

c)

Prevent Dispute over the payee.

d)

Strengthen external control

11.

Who is the drawer in bill of exchange?

a)

Seller

b)

Buyer

c)

Drawee

12.

Which of the following is NOT the functions of bill of exchange?

a)

To manage the risk of exchange rate fluctuation

b)

Seller able sell to third party as financing tools.

c)

As evidence of payment

d)

As trading in equity market