Question # 1

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

Which of the following can be cancelled by the issuing bank without the consent of the other parties

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Revocable letter of credit

Irrevocable letter of credit

Revolving letter of credit

Unconditional letter of credit

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

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Traveller's letter of credit

Traveller's cheque

Circular note

All the above

Commercial letter of credit is issued for the facilty of:

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Ambassadors

Common people

Businessmen

Alll of 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 letter of credit is accompanied by some documents

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Confirmed

Documentary

Non-documentary

All the above

I Owe You is a written instrument drawn by

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Trader

Debtor

Creditor

All the above

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

The important types of banker's letter of credit:

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Two

Three

Four

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 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

What is the nature of credit instrument IOU

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An autograph

A monograph

A holograph

A sonograph

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

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Confirmed letter of credit

Irrevocable letter of credit

Unconfirmed letter of credit

None of the above

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

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Home traders

Exporter

Importer

Both exporter and importer

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

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Profit

Interest

Commission

Duty

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