NEW
Font size
WorksheetsIPCK1
Total questions: 37
Worksheet time: 19mins
1. Which of the following trade terms (Incoterms 2010) are
applicable for maritime transport and inland waterway only?
a. FCA, FAS, FOB, CIF
b. CFR, FOB, CIF, FAS
C. CIF, CIP, FOB, FAS
d. FOB, FAS, CIF, DAT
2. In D/P, the collection instruction clearly stipulated that "All
charges are for drawee's account. In case of refusal, please waive
the charges". In fact, the importer did not agree to make payment
for both the value of the documents and the charges. What should
the collecting bank do?
a. Do not release the documents to the importer, and wait until the importer agrees to pay.
B. Do not release the documents to the importer, and advise the remitting bank without delay.
c. Automatically deduct the charges from the importer's account,
then release the documents to the importer.
d. Release the documents to the importer, and sue the importer for
not making payment.
3. A "CLEAN BILL OF LADING" means:
a. There is no corrections and alterations on the B/L.
b. The word "clean" should appear on the B/L.
c. There is no clause or notation expressly declaring a defective condition of the goods.
d. (a), (b) and (c) are correct
4. In which trade term is Saigon port (Vietnam) a loading port?
a. CIP Saigon Port, Vietnam
b. CFR Saigon Port, Vietnam
c. CIF Saigon Port, Vietnam
D. FOB Saigon Port, Vietnam
5. An Advising Bank is responsible for:
a. The content of the credit or amendment that is appropriate to the sales contract.
b. Checking and determining whether or not the documents appear on their face to constitute a complying presentation.
c. The apparent authenticity of the letter of credit or amendment
d. None is correct.
6. The bank having definite undertaking to honour a complying presentation is:
a. Paying bank
B. Confirming bank
c. Negotiating bank
d. Transferring bank
7. What type of L/C would be used when a company exports goods through middleman?
A. Red Clause L/C
b. Transferrable L/C
c. Reciprocal L/C
d. Negotiable L/C
8. If the terms and conditions stipulated in the L/C conflict with those
in the sales contract, the issuing bank will:
a. ask the seller and buyer to change the contents of L/C to be complying with the signed contract.
b. check documents against L/C because L/C is separate from the contract.
c. consider both L/C and contract when checking the presented
documents.
d. issue an amendment to make the L/C in accordance with the
contract
9. What type of L/C is a mechanism for providing funding to the
seller prior to the shipment of goods?
a. Revolving L/C
b. Transferable L/C
c. Reciprocal L/C
d. Red clause L/C
10. According to UCP 600, how many days does an issuing bank
have for checking the compliance of presented documents?
a. Five days after the presentation date
b. Five banking days after the presentation date
c. Five working days after the shipment date
d. Twenty one days after the presentation date
11. In D / P, the importer has made payment and the documents
have been released to them. However, after receiving goods, the
importer complains to the collecting bank about the quality of the
goods. In this case, the collecting bank has to:
a. make compensation for the importer.
b. inform the exporter about the quality of the goods and ask the exporter to hold responsbile for this.
c. sue the exporter (on behalf of the importer)
d. Take no responsibility.
16. If the importer refuses to pay for imported cargo, the
collecting bank should:
a. Send the documents back to the exporter
b. Follow the instructions given in collection instruction
received from the remitting bank
c. Ask the principal for solutions
d. Ask the importer to pay, if not, the bank has to be responsible for the payment
17.A collecting bank receives a collection instruction from a foreign
bank. Then the collecting bank receives another instruction from the
principal requesting to change the type of collection from D/P to
D/OT. According to URC 522, what should the collecting bank do?
a. Ask the buyer for details
b. Follow the instruction of the remitting bank
c. Follow the instruction of the principal
d. Follow the instruction of the principal if the buyer agrees to do so
18. As compared to clean collection, D/P provides a higher degree of
security to the exporter because:
a. the cost is lower.
b. the buyer will surely take the documents.
c. the collection bank guarantees to collect payment from the buyer
d. the shipped goods are still under the ownership of the seller until the buyer makes payment.
19. Consider the following case: An importer (L/C applicant) made a
deposit of 30% of the L/C value. After the L/C was issued the
importer went bankrupt. What is the obligation of the issuing bank in
regards to a complying presentation by the beneficiary?
a. The issuing bank is obliged to make a payment of 30% of the L/C value to the beneficiary.
b. The issuing bank is obliged to make a payment of 70% of the L/C value to the beneficiary.
c. The issuing bank is obliged to make a payment of 100% of the L/C value to the beneficiary.
d. The issuing bank is not responsible to make any payment to the beneficiary.
20. Which type of L/C would the beneficiary (the exporter) select to reduce the risk?
a. Revocable L/C
b. Confirmed irrevocable L/C
c. Irrevocable L/C
d. Transferrable L/C
1. Which is the most advantageous method of payment from the
perspective of a buyer when trading with a new partner?
a. Advance payment
b. T/T after shipment
c. D/P
d. Cash against documents
2. Which statement about the trade term CIF is not correct?
a. CIF stands for cost, insurance and freight.
b. The buyer has to sign an insurance contract for the
delivered goods.
c. The seller has to sign an insurance contract for the delivered goods in favour of the Buyer.
d. CIF is used for maritime transport.
3. According the UCP 600, when the L/C issuing bank determines
that a presentation does not comply and decides to refuse to
honour, it must give a single notice to that effect to the presenter.
The notice must state:
a. that the bank is refusing to honour.
b. each discrepancy in respect of which the bank refuses to honour.
c. the way that the bank handles the documents.
d. all (a), (b) and (c) are included in the notice.
4. Which of the following contents is not required to be stated on an
ocean bill of lading?
a. Freight details whether it is "prepaid freight" or "freight collect."
b. Vessel and voyage number
c. Number of original B/Ls
d. The unit price of the goods
Which documents are not to be issued by the seller/exporter?
A. Bill of landing, insurance policy, certificate of phytosanitary issued by the Department of Health
B. Certificate of quality, certificate of origin, bill of exchange
C. Packing list, commercial invoice and certificate of origin
D. Commercial invoice, certificate of quantity, certificate of quality
Which of the following statements is relevant?
A. All trade terms included in Incoterms impose the obligation of both parties to buy insurance
B. The trade terms of Incoterms stipulate the responsibilites of insurance companies
C. Only the latest version of Incoterms is effective
D. Parties are bound by the trade term that is agreed upon by them
Bank A (based in France) opens a JPY account with bank B (based in Japan). Conversely, Bank B (based in Japan) opens an EUR account with bank A (based in France). In communication with bank A, Bank B refers the JPY account of bank A as .....(1)...... and the EUR account of bank B as ......(2).....
A. (1) Vostro account; (2) Nostro account
B. (1) Nostro account; (2) Vostro account
C. (1) Vostro account; (2) Vostro account
D. (1) Nostro account; (2) Nostro account
As per the trade terms CPT and CIP of Incoterms 2020, the risks on goods are transferred from the seller to the buyer:
A. when the goods are placed alongside the ship at the port of discharge
B. When all customs formalities for the import of goods are completed in the country of the importer
C. When the goods are transported to the nominated place in the country of the importer
D. When the goods are delivered to the nominated carrier in the country of the exporter
A Vietnamese importer buys goods according to the trade term "CIF Saigon Port (Incoterms 2020)". The foreign seller/exporter is:
A. to bear risk up to Saigon Port (Vietnam) as this is the place where the risk is transferred from the seller to the buyer as per the trade term CFR
B. obliged to buy insurance for the goods for the main voyage of transportation
C. both A, and B are correct
D. both A, and B are incorrect
In a foreign trade contract, the seller is obliged to deliver to the buyer a document of title to the goods. That document is:
A. Insurance policy
B. Certificate of origin
C. Marine B/L
D. Non-negotiable ocean B/L
Which international organization issues documents such as Incoterms, URC and UCP for regulating internatinal payment activities?
A. International Chamber of Commerce
B. IMF
C. World Bank
D. WTO
In a foreign trade transaction the seller and the buyer agree the following:
(i) the buyer bears risks and costs when the goods were delivered to the carrier niminated by the buyer himself at the seller's premises
(ii) the seller carries out all customs formalities for the export of the goods.
Which of the following trade terms of Incoterms 2020 is relevant for this trade transaction?
A. DAP
B. FCA
C. CIP
D. DDP
Which of the following trade term stipulates that the seller is obligated to make a contract of carriage and pay for the cost of carriage?
A. FOB
B. EXW
C.FAS
D. CFR
In a trade transaction, the seller based in Vietnam and the buyer based in Australia agree that the goods are to be shipped from Saigon Port to the Port of Sydney. Of the following trade term is relevant?
A. USD 450,000 - FOB Port of Sydney
B. USD 500,000 - CIF Saigon Port
C. USD 500,000 - CIF Port of Sydney
D. Any above mentioned trade term
Which of the following contents is not required to be stated on the ocean bill of lading?
A. Number of origin B/Ls
B. Unit price of goods
C. Freight details whether it is "prepaid freight" or "freight collect"
D. Name of vessel and voyage number
Which of the following transport documents is a negotiable document (i.e. it is capable of being sold): (1) Air Waybill Waybill. (2) Ocean Bill of Lading: (3) Road Consignment Note; (4) Sea waybill
a. Only (2)
b. Only (4)
c. (1) and (4)
d. (2) and (3)
Which of the following ranks of the trade terms reflects that the cost for the seller is increasing?
A. FAS, FOB, CFR, CIF
B. CIF, DAT, DDP, CFR
C. CIF, CFR, FOB, FAS
D. CFR, FAS, FOB, FCA
According to Incoterms 2020, which trade term is relevant for the following trade transaction: A buyer from Vietnam importing goods from Hong Kong prefers to make a contract of carriage for the main route of sea transportation at the buyer's own expense and bears risks when the goods were placed alongside the ship nominated by the buyer at Hong Kong Port?
A. FAS Hong Kong Port
B. CPT Hong Kong Port
C. CIF Hong Kong Port
D. FOB Hong Kong Port
Which insurance document is to be issued under an open cover?
A. Insurance policy
B. Certificate of insurance
C. Both insurance policy and certificate of insurance
D. Insurance policy and insurance broker's note
An ocean bill of lading (B/L) is to be issued and duly signed by
A. The shipping company
B. The ship's master
C. An authorised agent of the shipping company
D. all A, B and C are correcct
Which statement is wrong?
A. In a typical correspondent banking relationship, a correspondent bank acts an agent abroad for a commercial bank.
B. A typical service provided by a correspondent bank is clearing service
C. Correspondent banking refers to the process of setting up branch in foreign countries
D. Correspondent banking can eliminate the need to have a global network of branches
