Question # 1

Which letter of credit is automatically renewed by fulfilling certain conditions

Choose an answer

Fixed

Documentary

Confirmed

Revolving

Which of the following is used to finance the people who want to travel abroad

Choose an answer

Traveller's letter of credit

Traveller's cheque

Circular note

All the above

Commercial letter of credit is issued for the facilty of:

Choose an answer

Ambassadors

Common people

Businessmen

Alll of the above

The letter of credit which can be endorsed to another person is called:

Choose an answer

Special L.C

Transferable L.C

Resolving L.C

None of the above

If the exporter is not the receiver (beneficiary) of money then a letter of credit is called:

Choose an answer

Resolving

Back to Back

Transferable

None of the above

What does the bank receive on issuing a letter of credit:

Choose an answer

Profit

Interest

Commission

Duty

Which of the following is useful in facilitating trade relation between the businessmen of different countries

Choose an answer

Bank draft

Money order

Letter of credit

Stock certificate

Which type of letter of credit authorized the exporter to obtain an advance before the shipment of goods

Choose an answer

Documentary letter of credit

Green-clause letter of credit

Confirmed letter of credit

Red-clause letter of credit

If there is no guarantee to honour a letter of credit then it is called:

Choose an answer

Confirmed letter of credit

Irrevocable letter of credit

Unconfirmed letter of credit

None of the above

Which of the following parties of a letter of credit is called beneficiary

Choose an answer

Importer

Exporter

Opening bank

Advising bank

Which of the following is an order of payment by one post office for another post office

Choose an answer

Postal order

Money order

Both a and b

None of these

The first stage or step between importer and exporter for the purpose of sale and purchase is:

Choose an answer

Oath or undertaking

Agreement

Contract with bank

Issuing of L.C

Which letter of credit is issued for a single or particular transaction:

Choose an answer

Fixed

Revocable

Red clause

Green Clause

Stock certificate is a document issued by

Choose an answer

Commercial bank

Central bank

Limited companies

Stock-market

Which letter of credit is accompanied by some documents

Choose an answer

Confirmed

Documentary

Non-documentary

All the above

More Classes

Other Links

Principles of Banking Icom Part 2 English Medium Chapter 11 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer