Exercises for
International Settlement
CHAPTER ONE
I Choose the best answer to each of the following statements.
1. There are four main methods of securing payment in international trade: ⑴payment under documentary credit; ⑵open account; ⑶collection; ⑷payment in advance. From an exporter’s point of view, t he order of preference is( ) .
A. ⑴, ⑵, ⑶,⑷
B. ⑷, ⑶, ⑴, ⑵
C. ⑷, ⑴, ⑶, ⑵
D. ⑵, ⑷, ⑴, ⑶
2.. An exporter sells goods to a customer abroad on FOB and on CIF terms, Who is responsible for the freight charges in each?( )
A. Importer, exporter
B. Exporter, importer
C. Importer, importer
D. Exporter, exporter
3. Foreign trade can be conducted on the following terms except for ( )
A. open account
B. documentary collection
C. documentary credit
D. public bonds
4.International cash settlement has the following disadvantages except( )
A. expensive
B. safe
C. risky
D. time-consuming
5. Under a letter of credit, the exporter can receive the payment only when( )
A. he has shipped the goods
B. he has presented the documents
C. the documents presented comply with the credit terms
D. the importer has taken delivery of the goods
6. Which of the following is based on commercial credit?( )
A. letter of credit
B. bank letter of guarantee
C. collection
D. insurance policy
7.CHIPS is the electronic clearing system for( )
A. GBP
B. USD
C. CNY
D. EUR
8.. CHAPS is the electronic clearing system for ( )
A. GBP
B. USD
C. CNY
D. EUR
9.The control documents exchanged by correspondent banks include all of the
following except( )
A. specimen of authorized signatures
B. table of test keys
C. schedule of terms and conditions
D. current accounts
10.Financial documents means ( ),or other similar instruments.
A. invoices
B. B/L
C. promissory notes
D. insurance policies。