If a bank other than the issuing bank guarantees the payment under an L/C ,this L/C is______
A. a confirmed credit
B. an irrevocable credit
C. non-transferable credit
D. a negotiable credit
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A____credit is normally used in processing trade.
A. back to back
B. revolving
C. reciprocal
D. red clause
Which of the following statements is NOT true about remittance? ______
A. It provides highest security to the buyer but not the seller.
B. it is cheaper to use than the other terms of payment
C. It is based on commercial credit , not bank credit.
D. It may impose high risk either to the buyer or to the seller.
If the exporter finds out mistakes on a received L/C, he should contact the___ at the first place.
A. advising bank
B. importer
C. negotiating bank
D. issuing bank
If there is no specific provision, the draft under a letter of credit should draw on the______
A. advising bank advising bank
B. issuing bank
C. negotiating bank
D. applicant
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