Question # 1

What is the nature of credit instrument IOU

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An autograph

A monograph

A holograph

A sonograph

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

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Fixed

Revocable

Red clause

Green Clause

Which letter of credit is automatically renewed by fulfilling certain conditions

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Fixed

Documentary

Confirmed

Revolving

Stock certificate is a document issued by

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Commercial bank

Central bank

Limited companies

Stock-market

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

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Documentary letter of credit

Green-clause letter of credit

Confirmed letter of credit

Red-clause letter of credit

What does IOU mean

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I am a debtor to you

I am a creditor to you

Both a and b

None of these

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

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Importer

Exporter

Opening bank

Advising bank

What is recieved by the post office on money order:

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Profit

Interest

Commision

All of the above

Which of the following is a non-commercial letter of credit

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Irrevocable letter of credit

Red-clause letter of credit

Special letter of credit

Traveller's letter of credit

Which letter of credit is accompanied by some documents

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Confirmed

Documentary

Non-documentary

All the above

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

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Postal order

Money order

Both a and b

None of these

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

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Bank draft

Money order

Letter of credit

Stock certificate

Which of the following gets facility due to commercial letter of credit:

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Home traders

Exporter

Importer

Both exporter and importer

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

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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:

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Resolving

Back to Back

Transferable

None of the above

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