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IIP301_Documentary Collection

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

The advantages of importers in D / P and D / A are the same.

a)

True

b)

False

2.

According to the ICC URC 522, the following documents are commercial documents?

a)

Drafts

b)

Acceptances

c)

Promissory Notes

d)

Invoice

3.

According to the ICC URC 522 following documents are financial documents:

a)

bill of exchange

b)

invoice

c)

bill of lading

d)

contract

4.

Who sets up D / P collection terms?

a)

Importer

b)

Exporter

c)

Remitting Bank

d)

Collecting Bank

5.

__________ is the key document prepared by the seller specifying the terms and conditions of the documentary collection.

a)

The bill of lading

b)

The delivery order

c)

The collection order

d)

The economic order

6.

In documentary collections, the party that signs or accepts the drafts is:

a)

Remitting bank

b)

Collecting bank

c)

Drawee

d)

Principal

7.

In documentary collections, the remitting bank _____ the documents listed on the collection received from their customer.

Choose one answer

a)

holds

b)

reviews

c)

transfers

d)

checks

8.

In international transactions, the collection order is submitted by the exporter:

a)

before the shipment of goods

b)

immediately right at delivery date

c)

when the importer received goods

d)

after the shipment of goods

9.

Not belong to different types of collections:

a)

Payment documents against acceptance

b)

Acceptance documents against payment

c)

Documents against payment

d)

Documents against acceptance

10.

Choose correct statement about documentary collections:

a)

The exporter's bank has obligations to pay upon presentation.

b)

The exporter's bank has no obligations to pay upon presentation.

c)

The importer's bank has obligations to pay upon presentation.

d)

The importer has no obligations to pay upon presentation.

11.

In D/A terms the buyer may accept (sign) the draft, take possession of the goods, but then refuse to pay the draft at maturity. In this case, the seller's option is:

a)

locate another buyer

b)

have the goods returned

c)

negotiate new terms with the buyer

d)

enforce the buyer's obligation to pay the draft through banking channels or legal action

12.

The role of banks in documentary collection is to verify that the documents submitted appear to be as listed in the collection order and to confirm the authenticity of the documents submitted.

a)

True

b)

False

13.

in which case seller should use documentary collection as payment method for his exporting transaction?

a)

The seller doubts the buyer's ability and willingness to pay for the goods

b)

The buyer's country is politically, economically, and legally unstable

c)

The shipped goods are easily remarketable

d)

There are foreign exchange restrictions in the buyer's country

14.

Banks are only permitted to act upon the specific instructions given by the principal in the collection order.

a)

True

b)

False

15.

If the documents call for payment in a specific currency, the banks must, unless otherwise instructed, collect payment for documents in that currency

a)

True

b)

False