WorksheetsImporting and Exporting M7: Methods of Payment
Total questions: 12
Worksheet time: 6mins
Which payment method involves the importer paying only after the goods are sold to the end-user?
Open Account
Consignment Sales
Documentary Collection
Cash in Advance
Which payment method is considered the riskiest and most time-consuming for the exporter?
Open Account
Cash in Advance
Documentary Collection
Consignment Sales
In which payment method does the title to the products often move from the seller to the buyer prior to payment?
Consignment Sales
Open Account
Documentary Collection
Documentary Letter of Credit
Which payment method provides no protection to the seller if they are not paid?
Consignment Sales
Open Account
Documentary Collection
Cash in Advance
In which payment method is a negotiable instrument confirming the importer's legal commitment to pay not required?
Documentary Collection
Consignment Sales
Open Account
Documentary Letter of Credit
Which payment method involves the exchange of documents through banks to settle the sale transaction?
Open Account
Consignment Sales
Documentary Collection
Cash in Advance
In a Documentary Collection, the documents are delivered to the buyer after payment has been made or after the buyer has accepted a bill of exchange. What is this bill of exchange called?
Letter of Credit
Documents against Payment
Documents against Acceptance
Cash on Delivery
Which payment method is governed by the Uniform Customs and Practice for Documentary Credits (UCPDC)?
Open Account
Documentary Letter of Credit
Cash in Advance
Consignment Sales
What is the role of the bank in a Documentary Letter of Credit?
Inspect the goods before payment
Act as an intermediary and deal only in documentation
Provide a guarantee for the quality of goods
Offer a loan to the importer
In which payment method does the importer give payment in advance for the goods before they are shipped?
Consignment Sales
Open Account
Documentary Collection
Cash in Advance
Which method of payment is less expensive because it involves direct communication between importers and exporters without the involvement of a commercial bank?
Documentary Letter of Credit
Open Account
Cash in Advance
Documentary Collection
Which payment method is typically used when the importer's credit status is unsatisfactory or the country risks are high?
Documentary Letter of Credit
Consignment Sales
Open Account
Cash in Advance
