12th class Principle of Banking chapter 12 Short Question with answers for ICOM part 2 Principle of Banking Chapter 12

Question # 1

Define Revocable Letter of credit.

Ans 1: The L.C. that cna be cancelled or modified by the issueing bank without he consent of other party. This is usually not accepted by the bunissmen.

Question # 2

Defein Irrevocable L.C.

Ans 1: The LC that cna not be cancelled or modified by the issueing bank without the concent of other party. This LC Provide a comple protection to the exporter.

Question # 3

Define Non documentary LC or Clean LC

Ans 1: The LC which is issued without any condition. the documents such as bill of lading, invoice and insurance policy etc. are not required ot attach with the clean LC.

Question # 4

What is the meant by negotiatin bank.

Ans 1: The bank whihc negotiate bills and makes payment of bill to the seller the advising and negotiating bank may or may not be same.

Question # 5

What are the various kind of L.C.

Ans 1: 1- Commercial letter of Credit.
Ans 2: 2- Non commercial Letter Credit

Question # 6

What are the various kinds of commercial LC.

Ans 1: 1- Revocable letter 2- Irrvocable LC 3- Documentary LC.
Ans 2: 4- Non- Documentary Lc 5- Pre- Fiance LC.
Ans 3: 6- Pre-Shipment LC. 7- Back to back LC

Question # 7

What are the the various kinds of LC.

Ans 1: 1- Commercial LC. 2- Non - Commercial LC

Question # 8

Why pre-finance LC. is called Red clause LC.

Ans 1: It is called rdd clasuse LC becasue the pre-finance credit clasue is written in red ink.

Question # 9

What are teh various kinds of Non-Cimmmercial LC.

Ans 1: 1- Traveler's letter of credit 2- Circular note
Ans 2: 3- Traverler's cheque 4- Credit cards

Question # 10

What are the PARTIES in volved in L.C.

Ans 1: Importer: Importer is person who buys fromt he foreing country an drequest his banker to open L.C. on his behalf and in favour of the exporter.
Ans 2: Importer's Bank: Importer's bank is a bank that issued L.C. on behalf of the importer int eh favour of exporter.
Ans 3: exporter : Exporter is a person who sells goods to the foregin country and in whose favour L.C. is opened.
Ans 4: Exporters Bank: Exporeter's bank is the bank of the exporting country that honorus the draft drawn by the exporter.

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12th class Principle of Banking chapter 12 short question with answers for ICOM part 2 Principle of Banking Chapter 12

Online Short Questions For Chapter 12 "ICOM Part 2 Principles of Banking Chapter 12 Short Questions Preparation "

Principles of Banking (E.M) - ICOM Part 2 Principles of Banking Chapter 12 Short Questions Preparation

Define Revocable Letter of credit.

Defein Irrevocable L.C.

Define Non documentary LC or Clean LC

What is the meant by negotiatin bank.

What are the various kind of L.C.

What are the various kinds of commercial LC.

What are the the various kinds of LC.

Why pre-finance LC. is called Red clause LC.

What are teh various kinds of Non-Cimmmercial LC.

What are the PARTIES in volved in L.C.

Prepare Complete Set Wise Questions For Chapter 12 "ICOM Part 2 Principles of Banking Chapter 12 Short Questions Preparation "

Set 1

ICOM Part 2 Principles of Banking Chapter 12 Short Questions Preparation - Set 1

Define Revocable Letter of credit.

Defein Irrevocable L.C.

Define Non documentary LC or Clean LC

What is the meant by negotiatin bank.

What are the various kind of L.C.

What are the various kinds of commercial LC.

What are the the various kinds of LC.

Why pre-finance LC. is called Red clause LC.

What are teh various kinds of Non-Cimmmercial LC.

What are the PARTIES in volved in L.C.

12th Principles of Banking Chapter 12 Test