MCQ (Multiple Choice Question)
MCQ (Multiple Choice Question):
Question: A credit that requires presentation of an invoice will be satisfied by which of the following?
- Commercial invoice.
- Proforma invoice.
- Sales invoice.
- Tax invoice.
Select one:
- A) 2 and 4 only.
- B) 1 only.
- C) land 3 only.
- D) 1, 3 and 4 only.
Answer: 1, 3 and 4 only
Question: Which of the following statements about drafts are correct?
- lt must be dated.
- lt must state its value in both words and figures.
- There must be no conflict between the amount in words and figures
- corrections and alterations need not be authenticated.
Select one:
A) 1 and 3 only.
B) 1, 2 and 3 only.
C) 1, 3 and 4 only.
D) 2 and 3 only.
Answer: 1 and 3 only.
Question: If the term ‘exporting country‘ is used in a credit without further definition being given in the credit as to its meaning, it shall have which of the following meanings?
- The country where the shipper is domiciled.
- The country of origin of the goods.
- The country of receipt of the goods by the carrier.
- The country from which shipment or despatch is made.
Select one:
- 1 and 2 only.
- 1, 2 and 4 only.
- 3 and 4 only.
- 2, 3 and 4 only.
Ans: 2,3 and 4 only
Question: The buyer has the least risk by agreeing which of the following payment methods?
a) Documentary credit.
b) Payment in advance.
c) open account trading.
d) Documentary collection.
Ans: c
Question: An importer requires goods of a stipulated quality while the exporter requires certainty of payment. Which of the following would best meet all requirements?
a) A confirmed standby credit payable on demand calling for beneficiary’s quality certificate.
b) A confirmed documentary credit payable at sight calling for beneficiary’s quality certificate.
c) An unconfirmed documentary credit payable at sight with drafts on issuing bank calling for a third-party quality certificate.
d) A confirmed documentary credit available by acceptance with drafts drawn on confirming bank calling for a third-party quality certificate.
Ans: d
Question: Which documentary credit enables a beneficiary to obtain pre-shipment financing without impacting his facility?
a) Transferable.
b) Red clause.
c) Irrevocable, payable at sight.
d) Confirmed irrevocable, payable at maturity.
Ans: b
Question: Which of the following statements is correct regarding transferable documentary credits?
a) The first beneficiary may request that confirmation be withheld from the transferred credit.
b) The first beneficiary may cancel the transferred credit without the second beneficiary’s consent.
c) A transferred credit can be transferred at the request of the second beneficiary to any subsequent beneficiary.
d) The transferred credit may expire in the second beneficiary’s domicile on the expiry date of the first beneficiary’s credit.
Ans: d
Question: lf a credit states that GBP 10,000 may be drawn each month during its one-year validity, then the credit is:
a) Clean.
b) Revolving.
c) Evergreen.
d)Transferable.
Ans: b
Question: In accordance with UCP 500, which of the following terms may not be altered when transferring a documentary credit?
a) Credit amount.
b) Required documents.
c) Period for presentation.
d) Amount of insurance cover.
Ans: b
Question: Where a documentary credit includes a shipping schedule and an instalment is not shipped within the stipulated period, which of the following statements concerning the documentary credit is correct?
a) It continues to be available for that installment only.
b) It continues to be available for that and future installments.
c) It ceases to be available for that installment only.
d) It ceases to be available for that and future installments.
Ans: d
Question: A cumulative, revolving documentary credit for USD 22,500 allows full monthly drawings and is valid for one year. Full monthly drawings were made during the first, second, fourth, fifth and seventh months and there have been no other drawings. In the last month of the documentary credit’s validity, what is the maximum value that can be drawn?
a) USD 22,500.
b) USD 112,s00.
c) USD 157,500.
d) USD 180,000.
Ans: c
Question: Which of the following percentages represents the minimum insured value on the insurance document, unless otherwise stated in the documentary credit?
a) 100%.
b) 105%.
c) 110%
d) 115%
Ans: c
Question: In accordance with UCP 600, all the following statements relating to commercial invoices are correct except that they must:
a) Be manually signed by the beneficiary.
b) Be made out in the name of the applicant.
c) Appear to have been issued by the named beneficiary’
d) Indicate the description of goods corresponding with the documentary credit’
Ans: a
Question: Uniform rules to govern documentary credit transactions were introduced for all of the following reasons except to:
a) Comply with international law.
b) Avoid disputes and misunderstandings.
c) Ensure consistency of approach across banks.
d) Obtain a common interpretation of documentary credits.
Ans: a
Question: An advising bank receives the beneficiary’s request to partially transfer an irrevocable transferable documentary credit, which is freely available and does not nominate a transferring bank. ln accordance with UCP 600, the advising bank:
a) May transfer the documentary credit as requested.
b) May transfer the documentary credit only in its entirety’
c) Should request the issuing bank to authorise a partial transfer.
d) Should obtain the issuing bank’s authorisation to act as the nominated transferring bank.
Ans: d
Question: Which of the following statements is not correct for a credit that is subject to UCP 600? lf the credit:
a) A prohibits transshipment, an air transport document may indicate that transshipment will or may take place.
b) Requires a bill of lading indicating freight prepaid, a notation of freight prepaid as per charter party is acceptable.
c) Calls for one original rail transport document, presentation of a rail transport document marked ‘duplicate’ is acceptable.
d) calls for a multimodal transport document made out to order, an endorsement made by, for or on behalf of the shipper is required.
Ans: b
Question: Financial Action Task Force recommendations require banks to exercise due diligence in their relationships with customers. Banks are required to have procedures in respect of all of the following, except to:
a) Know their customers.
b) Know what the goods will be used for.
c) Know the beneficial owners of the parties to a transaction.
d) Understand the nature of any underlying business relationship to the transaction.
Ans: b
Question: To avoid the possibility of committing a money laundering offence, documentary credit Practitioners should:
- report any suspicion.
- follow their bank’s procedures.
- stop any routine contact if they have a suspicion about a transaction.
- not consider as suspicious any transaction from a branch of their bank in a high-risk country.
a) 1 and 2 only.
b) 1 and 3 only.
c) 2 and 4 only.
d) 3 and 4 only.
Ans: a
Question: The ICC discourage sanction clauses in documentary credit transactions for all but one ofthe following reasons. Which is the exception? Because they may:
a) Be illegal.
b) Cause uncertainty for the beneficiary.
c) Cast a doubt on the bank’s undertaking.
d) Give the bank discretion whether to pay or not.
Ans: a
Question: By nominating a bank to incur a deferred payment undertaking without adding its confirmation, the issuing bank:
a) Authorizes the nominated bank to purchase or prepay documents.
b) Authorizes the nominated bank to accept drafts under the usance agreement.
c) Allows the nominated bank to advance funds to the beneficiary upon demand.
d) Imposes an obligation on the nominated bank to honour or negotiate documents.
Ans: a
Question: Which of the following banks must honour a complying presentation?
- An issuing bank with which the documentary credit is available by acceptance.
- A nominated bank under a freely negotiable credit payable at sight.
- A confirming bank where the credit is available by sight payment and the nominated bank Does not pay.
- A reimbursing bank that has issued a reimbursement undertaking.
a) 1 and 3 only.
b) 2 and 3 only.
c) 1,2 and 3 only.
d) 1,2 and 4 only.
Ans: a
Question: Which of the following statements is correct regarding a deferred payment obligation? Payment is made:
a) Only by the issuing bank.
b) On the maturity date of the draft.
c) Upon presentation of complying documents.
d) At a future date in accordance with the documentary credit.
Ans: d
Question: When a bank has accepted a usance draft, it is responsible for effecting payment at maturity when:
a) The draft is verified by the applicant.
b) The draft is presented by the beneficiary.
c) It has received funds from the issuing bank.
d) It has received funds from the reimbursing bank.
Ans: b
Question: Which of the following is not an undertaking of the confirming bank for a credit available by:
a. Sight payment – to pay at sight.
b. Deferred payment – to incur a deferred payment undertaking.
c. Negotiation – to negotiate with recourse time draft drawn by the beneficiary.
d. Acceptance – to honour a time draft drawn on nominated bank if the nominated bank does not accept the time draft.
Ans: c
Question: A beneficiary requests the confirming bank to purchase complying documents presented under a deferred payment credit. In accordance with UCP 600, which of the following actions could the confirming bank take?
- Obtain the issuing bank’s agreement prior to paying the beneficiary.
- Refuse the beneficiary’s request while undertaking to pay at maturity.
- Prepay the deferred payment undertaking.
- Obtain a recourse agreement from the beneficiary.
a) 1 only.
b) 4 only.
c) 2 and 3 only.
d) 3 and 4 only.
Ans: c
Question: If a credit, available with the issuing bank, calls for a draft at 50 days after sight, it is available by:
a) Payment.
b) Negotiation.
c) Acceptance.
d) Deferred payment.
Ans: c
Question: Two parties have agreed to trade and the seller requires the security of a documentary credit. The buyer does not wish to pay for the goods until at least 30 days after their arrival at the discharge port. Given that the journey will take a maximum of two weeks, which of the following will best suit those requirements? A documentary credit available with a nominated bank at:
a) 45 days after sight.
b) 45 days after invoice date.
c) 50 days after invoice date.
D) 45 days after bill of lading date.
Ans: d
Question: If a seller in country X wishes to receive payment from a buyer in country Y as soon as possible, how should the documentary credit best be made available?
a) Negotiation with a nominated bank in country.
b) Acceptance by the nominated bank in country.
c) Sight payment with the issuing bank in country.
d) Sight payment with the nominated bank In country.
Ans: d
Question: The beneficiary requires the return of its accepted time drafts in order to discount them in the market. Which of the following best meets the beneficiary’s needs? A documentary credit available with the:
a) Issuing bank by acceptance.
b) Advising bank by negotiation.
c) Nominated bank by negotiation.
d) confirming bank by deferred payment.
Ans: a
Question: Which of the following is discouraged under UCP 600?
a) The goods description field states ‘goods per the copy of the proforma invoice appended to the credit which forms an integral part of the credit’.
b) A copy of the sales contract is submitted with the credit application to the issuing bank and there is no reference to such attachment within the credit application.
c) The additional conditions field states that this credit is relative to sales contract XYZ and that all documents must state ‘details per purchase order 123 and contract XYZ’.
d) A copy of the purchase order is provided to the issuing bank for information purposes only and the goods description field of the credit application includes details of the purchase order.
Ans: a
Question: An issuing bank notifies the beneficiary that the applicant has ceased trading and that the documentary credit is cancelled and that cancellation shall be effective ten days after the date of the issue of its cancellation notice. The beneficiary presents documents to the issuing bank that otherwise fully comply with the credit terms fifteen days after the date of the cancellation notice The issuing bank:
a) Is obliged to honour the documents.
b) May simply return the documents unchecked as the credit has now ceased to exist.
c) Should hold the documents unchecked and seek further instructions from the beneficiary.
d) May refuse the documents as more than ten days have elapsed since the issue of its cancellation notice.
Ans: a
Question: Which of the following documents must be presented to the carrier to obtain release of the underlying goods?
- Air transport document.
- Bill of lading.
- Charter party bill of lading.
- Non-negotiable sea way bill.
a) 1 and 2 only.
b) 1 and 4 only.
c) 2 and 3 only.
d) 3 and 4 only.
Ans: c
Question: A marine bill of lading acts as:
- an acknowledgement of receipt of the goods by the carrier.
- evidence of a contract of carriage.
- a document of title for the goods.
- evidence of the contract between the seller and the forwarding agent.
a) 1 and 4 only.
b) 2 and 3 only.
c) 1, 2 and 3 only.
d) 2,3 and 4 only.
Ans: c
Question: Which of the following do not constitute partial shipment for goods shipped from the same place to the same destination? Presentation of:
- a courier receipt evidencing receipt of two separate packages.
- a road transport document indicating two different trucks.
- two separate courier receipts dated at different times of the same day by the same courier service.
- two separate road transport documents indicating the same date of shipment but each indicating a different truck.
a) 1 and 2 only.
b) 1 and 3 only.
c) 1, 2 and 3 only.
d) 3 and 4 only.
Ans: b
Question: A documentary credit calls for invoices for the full CIF value and insurance certificate covering all risks. Documents presented include invoices for the CIF value of USD 150,000 less discount of USD 25,000; a bill of lading evidencing shipment on 10 February; and insurance policy, issued on 11 February, for USD 137,500 and effective from 09 February covering Institute Cargo Clauses A. According to UCP 600, all of the following statements are correct except:
a) The insurance policy is acceptable.
b) The insurance covers shipment period.
c) The amount of the insurance cover is sufficient.
d) The risks covered by insurance document are acceptable.
Ans: c
Question: Which of the following documents must be signed?
a) Packing list.
b) Certificate of origin.
c) Commercial invoice.
d) Weight specification.
Ans: b
Question: A credit is payable against drafts drawn at 30 days after bill of lading date and requires shipment to be effected from any European port. The bill of lading indicates receipt of the goods by the carrier on 11 June XXXX, an on-board notation for vessel ‘A’ dated 13 June XXXX at Felixstowe, and transshipment at Hamburg with an on board notation for vessel ‘B’ dated 16 June XXXX which has been subsequently amended by the carrier to read as 15 June XXXX. The maturity date for the draft is:
a. 11 July XXXX.
b. 13 July XXXX.
c. 15 July XXXX.
d. 15 July XXXX.
Ans: b
76 thoughts on “MCQ (Multiple Choice Question)”
It’s an awesome post in support of all the web viewers; they will take advantage from it I am sure.
For the reason that the admin of this site is working,
no doubt very quickly it will be famous, due to its quality contents.
Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that I get in fact enjoyed account your blog posts. Anyway I’ll be subscribing to your feeds and even I achievement you access consistently rapidly.
I like this site because so much useful stuff on here : D.
ivermectin 8 mg http://stromectolivermectin19.online# generic stromectol
stromectol medicine
ivermectin tablets stromectol for sale – ivermectin price canada
buy cheap zithromax online buy azithromycin – zithromax 250mg
can you buy zithromax online zithromax online – zithromax 500 mg
ivermectin 5 mg stromectol for sale – ivermectin 10 ml
generic cialis pills us online pharmacy cialis discussion forum
resaonably priced cialis order cialis online no prescription reviews
ivermectin tablets ivermectin price canada
ivermectin 5 mg price ivermectin where to buy for humans
buy viagra online viagra price
cialis mit paypal bezahlen cialis with dapoxetine
ivermectin cost cost of ivermectin pill
purchase cialis in montreal cialis paypal payment canada
hydroxychloroquine 800mg plaquenil south africa
cialis dosage recommended buy low dose cialis online
stromectol pills buy stromectol
buy wellbutrin canada buy wellbutrin – wellbutrin generics
1800 mg wellbutrin can i buy wellbutrin online – wellbutrin where to buy
buy ventolin nz ventolin generic – ventolin 6.7g
ventolin prescription coupon ventolin discount coupon – ventolin proventil
buying ventolin uk buy ventolin – ventolin hfa inhaler
buy cheap wellbutrin wellbutrin without prescription – wellbutrin online india
clomid nolvadex nolvadex – tamoxifen mechanism of action
tamoxifen moa nolvadex generic
amoxil generic ed pills from canada buy pills online cheap zoloft cheap online generic drugs
zithromax cheap online generic drugs cheap generic drugs from canada zithromax generic drugs online
http://genericpillson.online/# generic pills zoloft
valor del cialis
clomid cheap generic ed pills buy pills online cheap cipro cheap online generic drugs
Propecia Foro
zithromax cheap generic drugs from india cheap generic pills zithromax buy generic drugs online
https://genericpillson.com/# cheap generic pills nolvadex
doxycycline generic ed pills from canada generic ed pills from canada prednisone cheap generic pills
nolvadex generic ed pills from canada generic ed pills from canada zoloft buy pills online cheap
https://genericpillson.com/# generic ed pills from canada stromectol
https://ciatad24.com/# cialis dosage frequency
hydroxychloroquine over the counter
stromectol how to take scabies stromectol dosage what is stromectol
http://ciatad24.com/# 20mg cialis side effects
buy plaquenil uk
http://iverstrom24.online/# stromectol dosage for lice
dose for stromectol stromectol ivermectin dosage stromectol how to take
https://viasild24.online/# sildenafil citrate tablets 100 mg
https://ciatad24.com/# cialis dosage frequency
long term effects of cialis cialis side effects dangers standard dose of cialis
https://iverstrom24.online/# stromectol what is it
https://iverstrom24.com/# stromectol 3mg tablets
side effects of cialis 5mg cialis strength levels 20mg cialis side effects
http://ciatad24.com/# 20mg cialis side effects
http://ciatad24.online/# cialis dosage recommendations
cialis dosage recommendations frequency cialis dosage recommendations 20mg cialis side effects
http://viasild24.online/# how many sildenafil 20mg can i take
http://viasild24.com/# how to take sildenafil 20 mg
long term effects of cialis cialis side effects dangers how long does cialis last
https://ciatad24.online# normal dosage of cialis
cost of cialis 2.5 mg
https://ciatad24.online# cialis medication
standard dose of cialis cialis dosage recommendations standard dose of cialis
https://viasild24.com/# how to take viagra for maximum effect
http://plaquenils.online/ plaquenil 200 mg canada price
careprost bimatoprost ophthalmic best price bimatoprost – best place to buy careprost
http://plaquenils.com/ plaquenil 100
generic stromectol [url=https://stromectols.com/]stromectol over the counter[/url] ivermectin price usa
http://stromectols.online/ ivermectin cream cost
buy stromectol pills stromectol over the counter – ivermectin 6mg dosage
http://baricitinibrx.online/ covid treatment baricitinib
plaquenil 200 [url=http://plaquenils.online/]plaquenil[/url] plaquenil cost in canada
https://bimatoprostrx.com/ best place to buy careprost
baricitinib price barilup – barinat
http://plaquenils.com/ plaquenil 500
baricitinib coronavirus [url=https://baricitinibrx.com/]baricitinib coronavirus[/url] baricitinib coronavirus
http://bimatoprostrx.com/ careprost bimatoprost for sale
https://baricitinibrx.com/ barikind
stromectol where to buy stromectol uk buy – ivermectin 80 mg
https://plaquenils.com/ plaquenil malaria
plaquenil cost in india [url=http://plaquenils.com/]buy plaquenil online[/url] hydroxychloroquine-o-sulfate
http://plaquenils.online/ plaquenil in australia
generic plaquenil pills hydroxychloroquine for sale – hydroxychloroquine 700
http://plaquenils.online/ hydroxychloroquine 700
baricitinib [url=https://baricitinibrx.com/]barikind[/url] buy baricitinib
http://bimatoprostrx.com/ bimatoprost generic
hxxplb https://stromectolr.com ivermectin 5
how much is ivermectin ivermectin for humans – stromectol tablets uk
ytetma https://stromectolr.com where to buy stromectol
lbzfcu https://stromectolr.com stromectol xr
What’s up, every time i used to check web site posts here
early in the break of day, since i love to gain knowledge of
more and more.
Every weekend i used to visit this site, for the reason that i wish for enjoyment, since this this site conations genuinely nice funny stuff
too.
Good information. Lucky me I found your website
by accident (stumbleupon). I have book-marked it
for later!
I used to be recommended this website by my cousin. I’m no longer sure whether or not this put up is
written through him as no one else realize such specified
about my trouble. You are amazing! Thank you!
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point.
You clearly know what youre talking about, why waste your intelligence on just posting videos to your blog
when you could be giving us something informative to read?
Thank you for any other fantastic article. Where else may anybody get that type of information in such an ideal way
of writing? I’ve a presentation subsequent week,
and I am at the search for such information.
Howdy! Do you know if they make any plugins to safeguard against hackers?
I’m kinda paranoid about losing everything I’ve worked hard on. Any suggestions?
Fascinating blog! Is your theme custom made or did you download it from somewhere?
A design like yours with a few simple tweeks would really make
my blog shine. Please let me know where you got your theme.
Many thanks