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Worksheets

Methods

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

What is the most secure payment method for the exporter?

a)

open account

b)

letter of credit

c)

advance payment

d)

bills for collection

2.

What is the least secure payment method for the exporter?

a)

open account

b)

letter of credit

c)

advance payment

d)

bills for collection

3.

What are shipping documents?

a)

bills of exchange

b)

bills of lading

c)

proforma invoices

d)

receipts

4.

What is a D/A transaction?

a)

documents against payment transaction

b)

documents against acceptance transaction

c)

delivered at place transaction

d)

term draft transaction

5.

What is a D/P transaction?

a)

sight bill transaction

b)

documents against payment transaction

c)

documents against acceptance transaction

d)

delivered at address transaction

6.

The issuing bank

a)

is the exporter's bank

b)

is the advising bank

c)

is the importer's bank

d)

is the confirming bank

7.

The confirming bank

a)

pays the importer

b)

pays the exporter

c)

issues the letter of credit

d)

accepts the letter of credit

8.

What is a sight draft?

a)

a draft of a contract

b)

a bill payable at some future time

c)

a bill payable on demand

d)

a bill payable in 30 days

9.

What is a term draft?

a)

a bill payable on demand

b)

a bill payable at some future time

c)

an invoice

d)

a shipping document

10.

What is a bill of lading?

a)

a document of title

b)

a document necessary to board a plane

c)

a bill payable at sight

d)

a bill to land

11.

What is an AWB?

a)

a document of title

b)

a way to board

c)

a railway transportation document

d)

an air transportation document

12.

What does CIF stand for?

a)

detergent

b)

Cost and Freight

c)

Cost, Insurance and Freight

d)

Cost and Insurance

13.

What does FCA stand for?

a)

Free of charge

b)

Free Carrier

c)

Football Champion

d)

Free carriage

14.

What does FOB stand for?

a)

Free alongside the ship

b)

Free board

c)

Free business

d)

Free on board