Please select the most suitable one from the four alternative answers for the questions from the Part 1 and Part 2 of this document.
Part 1 – Multiple Choice Question
1、Which one of the following statements NOT true?
A. L/C will be subject to UCP600 if the L/C itself indicates to that effect.
B. L/C will be subject to UCP600 even if the L/C itself does not indicate to that effect.
C. L/C will be subject to ISP98 if the L/C itself indicates to that effect.
D. L/C won’t be subject to some special articles of UCP600 if the L/C itself indicates to that effect.
2、Which one of the following issues are not addressed in UCP600?
A. Definitions and Terminologies
B. The Obligations of the Issuing Bank
C. How to Confirm the Legal Effectives of the Documents
D. The Disclaimers of the Banks
A、international customs and rules.
D、none of the above.
4、If the parties to a credit wish to exclude, or modify, certain Articles of UCP from the credit, they must _________
A. clearly stipulate in the terms and conditions of the credit.
B. state in the title of the credit only.
C. state in the body of the credit only.
D. not stipulate in the title of the credit.
5、Credits issued and communicated through the SWIFT network are subject to the current version of_______ even though the credit may not mention that fact.
D. None of the above
6、Which one of the followings is NOT a party to a Documentary Credit?
C. Issuing Bank.
D. Confirming Bank.
7、According to UCP600, which of the following statement is NOT true?
A. Applicant means the party on whose request the credit is issued.
B. Beneficiary means the party in whose favour a credit is issued.
C. Issuing bank means the bank that issues a credit at the request of an applicant or on its own behalf.
D. Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying or not complying presentation.
8、Your bank is the Nominated Bank under an Unconfirmed Documentary Credit payable at sight. Documents are presented in accordance with the terms of the Documentary Credit, and you choose to negotiate them. Which of the following statements best describes your actions?
1. Make immediate payment to the beneficiary.
2. Effect payment on receipt of covering funds.
3. Present documents to the Issuing Bank.
4. Confirm sight to the Reimbursing Bank.
A. 1 and 3 only.
B. 1 and 4 only.
C. 2 and 3 only.
D. 2 and 4 only.
9、According to UCP600, which one of the following statements is NOT true?
A. A credit is irrevocable only if the credit itself indicates to that effect.
B. Branches of a bank in different countries are considered to be separate banks.
C. Terms such as “first class”, “well known”, “qualified”, “independent”, “official”, “competent” or “local” used to describe the issuer of a document allow any issuer except the beneficiary to issue that document.
D. Unless required to be used in a document, words such as "prompt", "immediately" or "as soon as possible" will be disregarded.
10、The Confirming Bank receives documents on Friday 02 April and finds them to be in order on 05 April. Tenor is 30 days after the Bill of Lading date. The Bill of Lading is dated 01 April, and the Confirming Bank agrees to pay the Beneficiary immediately. On what date would the Confirming Bank expect to receive funds from the Issuing Bank? (There are NO bank holidays and Saturdays and Sundays are NOT banking days.)
A. 05 April.
B. 12 April.
C. 30 April.
D. 03 May.
11、Which one of the following statements is NOT true?
A. The expression "on or about" or similar will be interpreted as a stipulation that an event is to occur during a period of five calendar days before until five calendar days after the specified date, both start and end dates included.
B. The words "to", "until", "till", “from” and “between” when used to determine a period of shipment include the date or dates mentioned.
C. The words “before” and "after" when used to determine a period of shipment exclude the date mentioned.
D. The words “from” and "after" when used to determine a maturity date include the date mentioned.
12、A Documentary Credit states that shipment must be made on or about 27 June. Which of the following shipment dates would be acceptable?
1. 20 June. 2. 27 June. 3. 02 July. 4. 03 July.
A. 1 and 2 only.
B. 1 and 4 only.
C. 2 and 3 only.
D. 3 and 4 only.
13、A beneficiary put in its purchase agreement a special condition: “Payment by a confirmed letter of credit” and a credit titled as “confirmed letter of credit” subject to UCP 600 and without any other references to the confirmation was advised by the advising bank, which was also the nominated paying bank for at sight payment with reimbursements subject to URR 525 by an independent reimbursing bank. When the issuing bank in country A was ordered by the local government to freeze payment due to foreign exchange control, the beneficiary presented the compliant documents to the nominated paying bank in country B.
A. The payment to the beneficiary is secured by the advising bank because the advising bank is also the confirming bank of the credit.
B. The advising bank might not confirm the credit as it does not make it clear to the beneficiary.
C. The beneficiary will surely be paid by reimbursing bank.
D. None of the above is correct.
14、As a credit and a are separate transactions, banks must not be required to check documents presented against the latter document.
A. performance bond
B. sales contract
C. standby credit
D. delivery order
15、An applicant informed the issuing bank that the goods were rubbish and asked the issuing bank to freeze payment under a DC subject to UCP 600 due to trade frauds although the documents presented were all compliant.
A. The issuing bank should follow the instructions from the applicant.
B. The issuing bank should not follow the instructions from the applicant.
C. The issuing bank should verify whether goods were rubbish or not.
D. None of above is correct.