Trade Finance Question Bank II 2012 - 476 To 800 Questions-1

476 LC was issued for Rs. 50000 and the invoice was drawn for Rs. 55000, Rs.
, Rs. 5000 being samples not

called for in the credit, then the minimum insurance cover should be to the tune of:
A. Rs. 55000.00
B. Rs. 60500.00
C. Rs. 50000.00
D. Rs. 61000.00
477 LC calls for presentation of invoice allowing breakdown of cost, freight and other charges, packing
list and beneficiary certificate stating the drawing is final. The negotiating bank received the
following documents a) Invoice evidencing the gross amount as Rs. 15000, packing list, certificate of
origin evidencing the CIF value as Rs. 15,500 and beneficiary certificate. The drawing is for 80% of
the gross amount i.e., Rs. 12000, then the minimum insurance cover should be to the tune of:
A. Rs. 17050
B. Rs. 16500
C. Rs. 13200
D. Rs. 15500
478 Which of the following statements are correct but for:
No exclusions are allowed to be evidenced when LC calls for all risk cover
Insurance cover can never be post dated
If it incorporates an expiry date must clearly indicate that such expiry date relates to latest date
that loading on board or dispatch or taking in charge of the goods is to occur.
Insurance document should evidence franchise or excess deductible only if allowed in credit terms
Options:
A. 1 & 2 only
B. 3 only
C. 1,2 & 4 only
D. 3 & 4 only
479 LC Calls for shipment from New York to Chennai. The journey was covered by the following bills of
lading (LC allows presentation of multiple B/Ls collectively covering entire journey) :
New York to London under B/L No. 12345 evidencing the on board dates as 12th March 2009
(Vessel A) and 13th March 2009 (Vessel B)
London to Dubai under B/L No. 678910 evidencing the on board dates as 10 th March 2009 (Vessel
C), 12 March 2009 (Vessel D)
Dubai to Chennai under B/L No. 11121314 evidencing the on board date as 12th March 2009
Then the due date for tenor with 30 days from shipment date will be:
A. 16th April 2009
B. 12th April 2009
C. 11th April 2009
D. 13th April 2009
480 LC issued by Citibank SL was available by acceptance with HSBC UK, the documents were certified
clean and accepted by them on 01/04/2009, and the issuing bank received documents on
07/04/2009 and found the presentation to be discrepant. The discrepancies were advised to
applicant and presenter on the same day. The applicant & Issuing Bank accepted the discrepancies
on 10/04/2009. The tenor is 60 days sight, then the due date will be:
A. 01/05/2009
B. 31/05/2009
C. 09/06/2009
D. 06/06/2009
TF Q BANK Page 1
481 LC issued by Citibank SL was available by acceptance with HSBC UK, the documents were certified
clean and accepted by them on 01/04/2009, and the issuing bank received documents on
07/04/2009 and found the presentation to be discrepant. The discrepancies were advised to
applicant on the same day. The applicant & Issuing Bank accepted the discrepancies on
10/04/2009. The tenor is 60 days sight, then the due date will be:
A. 01/05/2009
B. 31/05/2009
C. 09/06/2009
D. 06/06/2009
482 Certificate of Origin is a document for:
A. Official Purposes
B. Commercial Purposes
C. Financial Purposes
D. None of the above
483 LC was issued by Bank D for Rs. 10000.00 available with Bank A by negotiation. The issuing bank
received the invoice amounting to Rs. 12000.00 whereas the draft was for Rs. 10000.00 from Bank
B then:
A. Bank B can request beneficiary to rectify invoice to the LC value
B. Issuing Bank is bound if Bank B negotiates up to Rs. 10000.00.
C. Issuing Bank is bound if Bank B negotiates up to Rs. 12000.00
D. Issuing Bank is not bound at all.
484 Which of the following are not false with respect to Certificate of Origin but for:
A. Certificate of origin may not be dated
B. Certificate of origin may be issued by any party
C. Certificate of origin can be issued by Chamber of Commerce even if the credit requires the
same to be issued by exporter provided it identifies exporter
D. Cert of origin can evidence consignee as applicant even if the BL is consigned to Issuing bank
485 Which of the following are not untrue with respect to drafts:
1. should Always be drawn by beneficiary
2. should Evidence always the Payee as beneficiary
3. should evidence the tenor as per LC terms
4. Expected to be drawn on the drawee
Options:
A. All of the above
B. 1,3 & 4 only
C. 2 & 3 only
D. 3 & 4 only
486 Certificate of Origin must be:
A. Issued by the Chamber of commerce / or similar authority
B. Signed & Dated
C. Dated
D. All of the above
487 A credit calls for an insurance documents in 3 folds. Insurance document is issued in 2 originals and
the same is indicated on the face of the document.
A. Presentation of only 2 originals is acceptable
B. Presentation of both originals and 1 photocopy of the document is Acceptable
C. Presentation of only one original and 2 photocopies of the document is acceptable
D. Both b & c
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488 Advance payment method minimizes the risk to:
a) Buyer
b) Seller
c) Seller’s bank
d) Buyer’s bank
489 Open A/C offers advantage to:
a) Buyer
b) Seller
c) Bank
d) Middleman
490 The only involvement of banks in open Account trading is:
a) Scrutinizing documents and paying money
b) Transfer of documents from seller to buyer
c) Transfer of funds from buyer to seller
d) Check the genuineness of buyer
491 Freight term in FCA case is Freight collect:
a) True
b) False
492 Which of the following Incoterms is correctly described?
Incoterms Insurance Doc Transport Doc
a) DDP required marked freight paid
b) CFR Required marked freight collect
c) FOB not required marked freight paid
d) FCA not required marked freight collect
493 Which party has the most responsibility to examine the terms and conditions of a Documentary
credit against sales agreement:
a) Applicant
b) Beneficiary
c) Issuing bank
d) Confirming bank
494 An exporter based in New York has agreed to sell goods to a company in London. The importer is
responsible for arranging freight and insurance. Which of the following shipping terms is correct?
a) CIF London
b) FOB London
c) CIF New York
d) FOB New York
495 What is the applicable Incoterms for an AWB marked Freight prepaid?
a) FCA
b) CFR
c) CPT
d) DAF
496 Under which of the following Incoterms is the Seller responsible for the obtaining the import and
export clearance as well as paying the import duty?
a) DAP
b) DDP
c) DAT
d) CIF
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497 Which of the following arrangements is correct in terms of the ascending order of value?
a) CIF, CFR, FOB
b) CFR, FOB, CIF
c) CFR, CIF, FOB
d) FOB, CFR, CIF
498 The application form submitted by applicant to issuing bank for issuance of Letter of credit in favor
of beneficiary should specify:
1) Documents against with payment can be made
2) Tenor in which payment is to be done
3) Terms and conditions that are to be complied by beneficiary
Options:
a) All the above
b) 1 and 3
c) 3 only
d) 1 only
499 A documentary credit can be made available with:

1) Issuing bank
2) Advising bank
3) Nominated bank
4) Confirming bank
Options:
a) All the above
b) 1 only
c) 1, 3 only
d) 1, 3 and 4 only
500 Negotiation can be done at the following counters:
1) Issuing bank
2) Advising bank
3) Nominated bank or any bank in case of freely negotiable credit
4) Confirming bank
Options:
a) All the above
b) 4 only
c) 3 and 4 only
d) 1, 3 and 4 only
501 In an acceptance credit, the responsibility of a nominated bank is to:
A. Accept and pay at maturity, drafts drawn on itself
B. Accept and pay at maturity, drafts drawn on itself or the issuing bank
C. Accept drafts drawn on it and pay on maturity after receipt of funds from Issuing bank.
D. Negotiate drafts and pay upfront drafts drawn on itself as own acceptance discounting.
E.
502 A credit calls for an Airway Bill consigned ‘To Order of Issuing Bank”. The AWB presented may be
consigned:
A. To Order of Issuing Bank
B. To Issuing Bank
C. Either (A) or (B) above
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503 A LC requires an Ocean Bill of Lading to be presented and the Port of Loading as per the Credit is
CHENNAI. The Bill of Lading presented evidences CHENNAI under the field headed ‘Place of Receipt’
and ‘Singapore’ under the field headed ‘Port of Loading’. In this case, the on-board notation should
evidence:
A. Loaded on Board at Chennai on -----(date)
B. Loaded on Board at Singapore on ----- (date) and the vessel on which it was loaded.
C. Loaded on Board at Chennai on ----- (date) and the vessel on which it was loaded.
D. Either (A) or (C) above
504 The credit states that the shipment date is around 8th March, which of the following Bill of lading is
acceptable:
A. BL issued on 16th March with an on board date of 14th March
B. Preprinted On board BL with an issue date of 7th March and an onboard notation as 14th March.
C. BL with an onboard date as 12th March
D. BL with an onboard date as 2nd March.
505 The LC expires on 30th April 2009 and the latest shipment date mentioned in the credit is 5 days
after the 4th of April 2009, which of the following presentation is acceptable, when there is no
presentation period mentioned in the Credit. (Assumption: No banking holidays other than
Saturday and Sunday in April 2009)
A. Documents presented with on board date as 10th April on 22nd April.
B. Documents presented on 2nd May as 30th April and 1st May is Saturday and Sunday with on
board date 8th April.
C. Documents presented on the 25th of April with on board date as 2ndApril.
D. Documents presented on the 29h of April with an on board date as 7th April.
506 The Latest shipment date mentioned in the credit is end of April and the tenor is 30 days after
Shipment. Which of the following Maturity dates are acceptable?
1. 21st of May
2. 19th of May
3. 20th of May
4. 31st of May
Options:
A. 1 and 2 only
B. 2 and 4 only
C. 1 and 3 only
D. 1 only
507 A credit calls for a signed commercial invoice in one copy. Which of the following is acceptable?
A. An Invoice in an Original letterhead
B. Photocopy of a manually signed invoice
C. Carbon copy of an invoice with a separate marking stating it is Original
D. A photocopy taken in an original letterhead and signed.
508 In article 20 of UCP, transhipment is defined as:
A. Unloading of goods from one vessel to another vessel.
B. Unloading of goods from one mode of conveyance to another mode of conveyance
C. Unloading of goods from one vessel to another vessel between the Port of Loading and the port
of discharge
D. None of the above.
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509 A Revocable RA states that the latest date for presentation of a claim is the same as LC expiry date
5th July. As a reimbursing bank
A. You will not process a claim presented after 5th July.
B. You will not process a claim presented 10 days before 5th July.
C. You can process a claim presented after 5th July.
D. You will not process the RA as this requirement is not as per the provisions of URR.
510 A credit calls for an Inspection report on the goods, performed and manually signed by an
Independent authority, You will accept:
1. An Inspection report on the beneficiary’s letterhead but signed by a party other than the one
who has signed the invoice.
2. A 20-page Inspection report clipped together and signed in one the pages by a third party
stating that they have performed the inspection.
3. An unsigned Inspection report in the letterhead of a third party and a beneficiary certificate
referencing to that Inspection report and stating that the party on whose stationery the report
was issued has performed the inspection.
4. An unsigned Inspection report in the letterhead of the beneficiary and a certificate referencing
to that Inspection report, signed and completed by a third party identifying themselves as an
inspection agency and stating that the inspection was carried out by them.
Options:
A. 1 and 4 only
B. 2 and 4 only
C. None of the above
D. All of the above.
511 If the credit specifically requires presentation of charter party contract, then
A. Charter Party contract can be presented
B. Charter party contract need not be presented
C. Charter party contract must be presented and examined by the bank to check the internal
consistency between documents
D. Charter Party Contract must be presented but does not require examination of the document
by the bank.
512 The Credit states as part of additional conditions the following :
+ LATE SHIPMENT PENALTY:
LATE SHIPMENT FOR 1 TO 4 DAYS: 0.50 PCT OF INVOICE VALUE.
LATE SHIPMENT FOR 5 TO 8 DAYS: 0.75 PCT OF INVOICE VALUE.
The latest shipment date is 5th Feb.
Which of the following documents are acceptable as clean?
A. BL evidencing shipment on 7th Feb, with the invoice showing a 0.5 percent deduction in value.
B. BL evidencing shipment on 13th Feb, with the invoice showing a 0.75 deduction in value.
C. Both (A) and (B)
513 Which of the following will satisfy Article 20 of UCP 600?
1. Carrier identified as ‘XYZ Ltd’ on top of the Bill of Lading and signed by ‘XYZ Ltd’ without
identifying the capacity near the signature
2. Carrier identified as ‘XYZ Ltd’ on top of the Bill of Lading and signed by ‘XYZ Pvt Ltd’ identifying
themselves as ‘Carrier’ near the signature.
3. Carrier identified as ‘XYZ Ltd’ near the signature part and Signed by ‘ABC Ltd’ in the capacity ‘As
Agents’
4. Signed by ‘ABC Ltd’ ‘As Agents to Carrier XYZ Pvt Ltd’
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Options:
A. 1 and 4 Only
B. 1,2 and 4 Only
C. 2,3 and 4 Only
D. 1 Only
514 Under a Credit which prohibits transhipment, Banks will accept a combined transport ocean bill of
lading which evidences that Transhipment will take place
A. If the entire voyage is covered by one and the same combined transport ocean bill of lading
B. Only, if the entire voyage is covered by one and the same multimodal transport document and
indicates that the relevant cargo is shipped in Container(s), Trailer(s) and/or ‘LASH’ barge(s).
C. Even if there is more than one transport document, provided they all combined together
constitute contract of carriage from the place of taking charge to the place of final destination.
D. Only, if the entire voyage is covered by one and the same combined transport ocean bill of
lading and has a clause ‘The Carrier reserves the right to transship.
515 Which of the following statements are TRUE?
A. In an Airway Bill, the date of dispatch is always considered as the date of shipment
B. In an Airway Bill, the date of dispatch is considered as the date of shipment only if the Credit
explicitly requires the AWB to evidence the date of dispatch
C. In an Airway Bill, the date of Issue is always considered as the date of shipment
D. In an Airway Bill, the date of Issue is considered as the date of shipment only if the Credit does
not require the date of dispatch to be mentioned in AWB
Options:
A. 2 and 4 Only
B. 1,2 and 4 Only
C. 2,3 and 4 Only
D. 4 Only
516 Where a Credit explicitly prohibits HAWBs, banks
A. Will accept HAWB provided it is signed by the Freight forwarders in the capacity ‘As Carriers’
B. Will not accept HAWB at all
C. Will accept HAWB if the freight forwarder has signed the HAWB in the capacity ‘As Freight
Forwarders’
D. Will accept HAWB provided the Freight forwarders sign it in the capacity ‘As Agents to Carrier’,
but the name of the Carrier is not stated in the transport document.
517 A Road transport document
A. Must indicate the number of Originals issued
B. Need not indicate the number of originals issued
C. Must indicate the number of Originals issued and all the originals must be presented the
counters of the bank, if full set is required by the Credit.
D. Should not indicate the number of Originals issued.
518 The credit calls for a certificate of inspection issued by a competent authority. Which of the
following is acceptable
1. Certificate of inspection issued by government agency
2. Certificate of Inspection issued by the beneficiary
3. Inspection certificate issued by the applicant
4. Inspection certificate issued by the negotiating bank
Options:
A. 1 and 3 only
B. 1 only
TF Q BANK Page 7
C. 1 and 4 only
D. 1, 3 and 4 only
519 The word “Iran” is struck off in the typed name of the insurance company in the invoice. Which of
the following is sufficient authentication?
A. An authentication of the correction by the insurance company.
B. An authentication of the correction by the insurance company’s agent identifying itself as
agent.
C. No authentication.
D. An authentication by the beneficiary.
520 In a Road Transport document, Carrier can be named as
1. Actual Carrier
2. Contracting Carrier
3. Succeeding Carrier
4. Issuing Carrier
Options:
A. 1 and 4 Only
B. None of the Above.
C. 2,3 and 4 Only
521 When a Credit calls for a Courier receipt to be issued by a XYZ courier agency, then the Courier
receipt
A. Should be issued and signed by the XYZ courier agency
B. Can be issued and signed by the agents to XYZ courier agency provided XYZ is identified as the
courier agency
C. Issued by XYZ Courier Agency but not signed
D. Issued by XYZ Pvt. Ltd Courier Agency and signed but undated
522 A credit expires on 15th June; and the shipment was made on 15th May Saturday. Which of the
following presentations are acceptable when no presentation period is mentioned in the Credit?
(Saturdays and Sundays are not banking days)
1. Presentation of documents with a Charter Party BL on 7th June
2. Presentation of documents with an FCR on 15th June
3. Presentation of documents with a CMR on 5th June
4. A freight forwarder BL on 17th June
Options:
A. 2 and 3 only
B. 3 only
C. 1, 2 and 3 only
D. 2 and 4 only
523 When a Credit calls for a ‘Post receipt’ or ‘Certificate of Posting’, Banks will accept
A. Post receipt or Certificate of Posting Only
B. Postal Certificate
C. Acknowledgement of Posting
D. However named as long as the provisions of Article 25 are met.
524 Which of the following statements are TRUE ?
1. If the credit is silent, then the Bill of Lading can show a clause ’Goods may be loaded on deck’
2. Where the Credit requires a Courier receipt to be presented and further indicates that the
Courier charges should be prepaid, then the Courier receipt presented can indicate ‘Freight
charges are for account of the Beneficiary’
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3. Presentation of more than one courier receipt bearing the same place and date of shipment do
not Constitute Partial Shipment.
4. A Credit does not specify a Latest Shipment date and the Expiry date of the Credit is 19-Mar-
2009 which is a Non-Banking day. In this case, a Bill of Lading can evidence the shipment date
as 21-Mar-09 (Next working day subsequent to the Expiry date).
Options:
A. 2,3 and 4 Only
B. 1,2 and 4 Only
C. 1,2 and 3 Only
D. 2 Only
525 Which Documentary credit allows the beneficiary to obtain a packing credit without impacting his
credit facilities
A. Red Clause LC
B. Advance Payment Guarantee
C. LC allowing pre-shipment credit by the nominated bank
D. Advance Payment Standby LC.
526 As an issuing bank’s doc examiner you can accept which of the following documents as originals
A. Photocopy of the BL signed in original by the beneficiary.
B. Tele Fax copy of an invoice with an original stamp and perforated signature.
C. A carbon copy of the BL signed in original by the carrier and marked as 3rd Original.
D. A reprographic copy of an insurance document issued in a sole original.
527 When a Credit calls for a Road transport document to be presented, then the following is accepted.
1. RCN indicating that it is Copy for Shipper
2. RCN indicating that it is Copy for Consignor
3. Copy for carrier.
4. RCN not indicating for whom it is issued
Options:
A. 1 and 4 Only
B. 1, and 2 Only
C. 1,2 and 3 Only
D. 1, 2 and 4 Only
528 As a confirming bank you have, which of the following number of days to refuse documents
including the date of presentation:
A. 7 banking days
B. 8 days excluding holidays
C. 6 banking days
D. 8 banking days.
529 The credit calls for a Tank Ullage report of the vessel conducted to prior to loading on board, the
goods were loaded on 1st April.
1. A tank Ullage report issued on 1st April, when the BL was issued on 3rd April.
2. A document which states it is a pre shipment tank Ullage report
3. A tank Ullage issued on 4th April, stating the date of tank inspection for Ullage as 1st April
4. A tank Ullage report issued on 1st April
Options:
A. 2 and 4 only
B. 3 and 4 only
C. 1, 2 and 4 only
D. All of the above
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530 Which of the following is NOT true?
A. The beneficiary must always either accept or reject an amendment.
B. An issuing bank is irrevocably bound by the amendment the moment it issues such an
amendment.
C. After advising the amendment, the confirming bank can state that it is not extending
confirmation to the amendment.
D. An Amendment should be issued clearly and precisely in accordance to the instructions of the
applicant.
531 A LC which is available for presentation of shipping documents only after the Issuing bank has
received a performance guarantee by the beneficiary’s bankers is known as :
A. Standby LC
B. Conditional Documentary Credit
C. Counter Standby
D. Inoperative LC
532 The additional conditions state that all shipping documents must be presented in duplicate
1. Beneficiary can submit 3/3 original BL’s.
2. Beneficiary is required to submit at least a copy and one original of the transport document.
3. Beneficiary must submit all documents except drafts in one original and in one copy
4. Beneficiary must submit the insurance document in one original and in one copy
Options:
A. All of the above
B. 1 and 3 only
D. 1, 2 and 4 only
533 In an Irrevocable credit the Confirming bank CAN
1. Refuse to pay whenever the documents are not presented through them.
2. Refuse an amendment to the confirmed credit.
3. Confirm the credit only with the authorization of the Issuing bank and the beneficiary.
4. Claim re-imbursement for clean documents from the issuing bank when it has negotiated under
reserve
Options:
A. 1 and 2 only
B. 1,2 and 4
C. 2 and 3
D. 2 only
534 A confirming bank confirms a LC with a value of USD 120,000 and a tolerance up to 5%. This credit
is amended to a value of USD 110,000. The confirming bank advices this amendment The maximum
liability of the confirming bank is up to:
A. USD 110,000
B. USD 120,000
C. USD 115500
D. USD 126000
535 An Exporter in Johannesburg has agreed to sell goods to a company in Chennai. The importer is
responsible for freight and insurance. Which of the following Incoterms is applicable
A. CIF Chennai
B. FAS Chennai
C. CIF Johannesburg.
D. FAS Johannesburg
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536 Upon receipt of a notice of cancellation of a revocable credit by the issuing bank, the nominated
bank MUST
1. Claim on the issuing bank for any obligations undertaken on the credit prior to cancellation
within 7 banking days.
2. Advise the cancellation to the beneficiary.
3. Advise and claim on the issuing bank for any obligations undertaken on the credit prior to
cancellation
4. Advise the cancellation to the beneficiary and debit the issuing bank for its charges.
Options:
A. 1 and 2 only
B. 2 and 3 only
C. 2 and 4 only
D. 2 only
537 If an Applicant requests that the documentary Credit expires for presentation at the Issuing Bank
with drafts drawn on the Issuing bank 90 days after sight, how should the Documentary credit be
made available
A. By sight payment
B. By deferred payment
C. By acceptance
D. By negotiation
538 The confirming bank receives documents on Friday 02April and finds them to be in order on 05
April. Tenor is 30 days after the bill of lading date. The bill of lading is dated 01 April, and the
confirming bank agrees to pay the beneficiary immediately. On what date would the Confirming
bank expect to receive funds from the Issuing Bank (There are NO bank holidays and Saturdays and
Sundays are NOT banking days)
A. 05 April
B. 12 April
C. 30 April
D. 03 May
539 Which of the following is NOT true?
A. Insurance documents must appear on their face to be signed by insurance companies or
underwriters or their agents
B. Unless otherwise stipulated in the credit bank will accept an insurance document which
indicates that the cover is subject to a franchise or an excess(deductible)
C. Cover notes issued by brokers are acceptable unless otherwise stipulated in the credit
D. Credit should stipulate the type of insurance required and any additional risks which are to be
covered
540 LC is available with issuing bank by deferred payment. Drafts can be drawn on
A. Issuing bank
B. Advising Bank
C. Nominated bank
541 The value of a revolving credit is USD 35,000 and re-instatement of the amount is non- cumulative
for 8 months. The beneficiary ships for the full available value in the 1st, 2nd, 4th and 6th month. The
Maximum possible liability to the issuing bank at the time of issuance is.
A. USD 280,000
B. USD 140,000
C. USD 240,000
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D. USD 210,000
542 A documentary credit is received without a stipulation of whether partial shipments are allowed or
not in this case.
A. They are allowed
B. Refer to the Issuing bank
C. Refer to the Beneficiary
D. They are prohibited
543 Which of the following statements is NOT true?
1. Unless otherwise stipulated in the credit Commercial invoices must be signed.
2. Description of the goods in the commercial invoice must correspond with the description in the
credit.
3. Unless otherwise stipulated in the credit the Insurance document must be expressed in the
currency of the Credit.
4. Claused Bill of Lading is acceptable unless otherwise stipulated in the credit.
Options:
A. 1 and 4 Only
B. 1, and 2 Only
C. 1,2 and 3 Only
D. 1, 2 and 4 Only
544 In a transferred credit which of the following can be curtailed.
1. Period for Shipment
2. Unit Price
3. Insurance
4. Last date for presentation.
Options:
A. 1 and 4 Only
B. 1, and 2 Only
C. 1,2 and 3 Only
D. 1, 2 and 4 Only
545 Which of the following statements is True?
1. An e-UCP credit must specify formats in which electronic records are to be presented
2. An e-UCP credit allowing presentation of electronic records must state a place of presentation
3. Under an e-UCP credit electronic record must be presented at the same time.
4. Each presentation under an e-UCP credit must identify the e-UCP credit under which it is
presented
Options:
A. 1 and 4 Only
B. 1, and 2 Only
C. 1,2 and 3 Only
D. 1, 2 and 4 Only
546 When a bank confirms an Irrevocable Transferable documentary credit it assumes the credit risk of
which party.
A. The Applicant
B. The Issuing Bank
C. The First Beneficiary
D. D. The Advising Bank
547 Delivery of goods has been made to the buyer on 08 March. The relevant documents were
presented in order, including a CMR dated 15 days prior to delivery. The documentary credit terms
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state that payment is to be effected 30 days after shipment. On which date will payment be made?
(There are NO bank holidays and Saturdays and Sundays are NOT banking days)
A. Friday. 22 March
B. Monday 25 March
C. Friday 05 April
D. Monday 08 April
548 Where a Documentary Credit includes a shipping schedule and an installment is NOT shipped
within the stipulated period. Which of the following statements concerning the Documentary
Credit is correct?
A. It continues to be available for that installment only.
B. It continues to be available for that and other installments.
C. It ceases to be available for that installment only.
D. D. It ceases to be available for that and other installments
549 The Incoterms mentioned in the additional conditions of the credit are CFR. Which of the following
costs shown in the invoice is acceptable?
1. Ex-Factory value.
2. Inland Freight
3. Documentation Fee
4. Ocean Freight
Options:
A. All of the above
B. 1,2 and 4 only
C. 1 and 4 only
D. D. 1,3 and 4 only
550 In “C” group of Incoterms the seller is NOT responsible for which of the following?
A. Loading to the main carrier or means of conveyance.
B. Inland freight in Buyer’s country.
C. Payment of customs charges and taxes in Seller’s country.
D. Freight in seller’s country
551 All reimbursement authorizations must state.
1. Credit number.
2. Currency and amount.
3. Latest date for presentation of claim
4. Claiming bank
Options:
A. 1 and 2 only
B. 1, 2 and 4 only
C. All of the above
D. 1, 2 and 3 only
1. A reimbursement Undertaking can be cancelled without the agreement of claiming bank.

2. A claiming bank must communicate its acceptance or rejection of Reimbursement Undertaking
Amendment to the reimbursing bank.
3. A reimbursing bank must communicate its acceptance or rejection of I.R. amendment to the
issuing bank.
4. An Irrevocable reimbursement authorization cannot be amended or cancelled without the
agreement of the reimbursing bank
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Options:
A. 1 Only
B. 1, and 4 Only
C. 1,2 and 3 Only
D. 2 and 4 Only
553 What is the maximum number of banking days allowed for a reimbursing bank to process
reimbursement claim received.
A. Ten.
B. Four.
C. Three.
D. Seven
554 Which of the following statements are NOT TRUE?
1. The words ‘to’, ’Until’, ‘till’ ‘from’ and words of similar impact when applied to any date or
period in the credit referring to shipment will be understood to include the date mentioned.
2. Where the words ‘On or about’ used in connection with shipment, banks will interpret them as
a stipulation that shipment is to be made during the period from 10 days before to 10 days
after the specified date, both end days included.
3. An LC stipulates that shipment is to be made during the middle of Jan .The Bill of Lading
presented indicates shipment date as 20th Jan. This is acceptable.
4. A Bill of Lading can evidence a Shipment date prior to the LC Issuance date.
Options:
A. 1,3 and 4 Only
B. 1,2 and 4 Only
C. 1 and 2 only
D. 2 only
555 The delivery point under a CIF shipment where the seller’s responsibility ends is.
A. Shipped on board at the port of loading.
B. On board the ship (arrived) at the port of discharge.
C. Discharged onto the quayside at the port of discharge.
D. Discharged alongside the ship for import clearance.
556 WHICH is/are not always a party to a Documentary Credit?
A. Beneficiary
B. Issuing bank
C. Beneficiary and Issuing Bank
D. Confirming bank
557 Documentary Credit involves assurance of WHAT to the beneficiary provided complying documents
are presented
A. Obligation
B. Performance
C. Payment
D. Documents
558 If the terms and conditions of the Credit are complied with, then Issuing bank will honour its
obligations to the beneficiary under the Credit
A. With recourse
B. Without Limited recourse
C. Without recourse
D. With Limited recourse
559 Payment is made under a Documentary Credit against WHICH documents
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A. Listed
B. Complying
C. All
D. Stipulated
560 WHICH Bank is not considered another bank for HSBC, Mumbai
A. Citibank, Mumbai
B. HSBC, Ireland
C. HSBC, Dubai
D. HSBC, Delhi
561 In credit operations all parties concerned deal with documents and not with:
A. Goods
B. Services
C. Other Performances
D. All the above
562 Which of the following statements is/are True:
A. If incomplete/unclear instructions are received to advise/confirm/amend a credit, a Bank may
give preliminary notification to beneficiary for information only and without responsibility.
B. When Advising bank contacts issuing bank for incomplete/unclear instructions, issuing bank has
to provide the necessary information within 7 banking days
C. Correction in Applicant’s Application form need not be authenticated
D. Correction in Applicant’s Application form received by electronic means cannot be
authenticated
563 Banks utilizing the services of another bank or other bank for the purpose of giving effect to the
instructions of the Applicant do so for the account and risk of:
A. Issuing Bank
B. Applicant
C. Beneficiary
564 WHO shall be bound by and liable to indemnify the banks against all obligations and responsibilities
imposed by foreign laws and usages
A. Issuing bank
B. Applicant
C. Beneficiary
565 An issuing bank sends a Mail LC to Advising bank on 1st February. The LC reaches Advising bank on
20th February. Meanwhile LC expires and late presentation occurs. Beneficiary claims that Issuing
bank had made a delay by not sending the LC through proper courier and so he claims payment.
Which party is ultimately responsible for the delay?
A. Applicant
B. Beneficiary as he failed to follow up for LC before expiry
C. Issuing bank
566 Credit stipulates credit would only be honored at the counters of the issuing bank. The advising
bank receives documents what should it do?
A. It will examine documents and inform beneficiary of any discrepancies found
B. It will examine documents and pass it on to issuing bank
C. It will forward documents directly to the issuing bank without any document checking
D. It will ask beneficiary to route the documents through any other nominated bank
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567 The Advising bank elects not to advise the credit, what should it do?
A. It should inform issuing bank and beneficiary without any delay
B. It should inform issuing bank within 7 banking days
C. It should inform issuing bank as early as possible along with reasons for refusal
568 If a confirming bank chooses to advice an amendment without adding confirmation, it must inform
WHOM without delay
A. Issuing bank
B. Beneficiary
C. Both Issuing bank and beneficiary
D. Issuing bank, beneficiary and Applicant
569 What should an Advising Bank do if it receives a Documentary Credit from Issuing Bank that
includes the term “Transmissible”?
A. Disregard the term
B. Seek clarification
C. Advice the DC as transferable as it is mentioned in UCP
D. Refuse to advice the DC
570 Which of the following statements is/are NOT TRUE:
A. The Advising bank must inform Issuing bank if it is not willing to advice the Credit
B. The Nominated bank must inform Issuing bank if it is not willing to act as nominated bank
C. If another bank is nominated by Issuing bank to add confirmation to a Credit, but is not willing
to do so, it must inform Issuing bank
D. The obligations of both issuing bank and confirming bank are revocable.
571 Which of the following statements is/are false?
A. In case of non-confirming documents, there is no liability for the Nominated bank to pay
beneficiary
B. Payment made by Issuing bank to beneficiary is without recourse
C. Payment made by Issuing bank to Confirming bank is without recourse
D. Payment made by nominated bank to beneficiary is without recourse
572 WHICH is the bank that issues Reimbursement Authorization under the Credit?
A. Confirming bank
B. Reimbursing bank
C. Issuing Bank
573 Any difficulty, which a Claiming bank faces in respect of non-payment, late payment or interest
charges because of acts of reimbursing bank, should be referred to:
A. Issuing bank
B. Confirming bank
C. Reimbursing bank
D. Applicant
574 Advising Bank Must:
a) Check apparent authenticity of the credit
b) Advise & pay for clean docs, if received from beneficiary
c) Advise credit to beneficiary
d) Advise credit if unclear instructions are received.
575 A delivery order is issued for a particular transaction. Issuing bank makes the bill discrepant.
Beneficiary claims payment From Issuing bank quoting the reason that applicant has accepted to
pay. Is Issuing bank obliged to make payment?
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a) Yes
b) No
576 Citibank N.A. Delhi received documents from Citibank N.A. Ireland; Wherein Ireland has made the
transaction discrepant by quoting a discrepancy in beneficiary Certificate. Previous transaction
under the same LC was made clean with the same beneficiary Certificate. Beneficiary reverts
claiming payment for the second bill as the previous bill was made clean and paid out? Should
Citibank N.A. Delhi Pay?
a) Yes
b) No
577 As per LC, description of goods is Iron Pipes. Invoice mentions Iron Pipes, whereas BL mentions
pipes and also states “Shippers Load And Count”. Issuing Bank makes the document clean. While
clearing goods, applicant finds plastic pipes. He immediately calls up Issuing bank and instructs to
withhold the payment. Is Issuing bank obliged to act on applicants call?
a) Yes
b) No
578 An issuing bank becomes bound by the terms of an amendment to a Documentary credit at the
time:
a) Beneficiary accepts amendment, whether expressly or by implication.
b) Reimbursing Bank agrees to the applicants request for an amendment.
c) Advising Bank advises the amendment to the beneficiary.
d) Issuing Bank issues the amendment to the advising bank.
579 A documentary credit for USD 120,000.00 calls for shipment of fertilizer in February, March, April
and May. Each shipment is to be for about 500 tones. Shipment was effected as follows:
1. 450 tones sent 24 February for value USD 27,000.00.
2. 550 tones sent 12 April for value USD 33,000.00.
4. 550 tones sent 04 June for value USD 33,000.00.
Which of the above shipments will be honoured on presentation?
A. 1 only.
B. 1 and 3 only.
C. 2 and 4 only.
D. 1, 2 and 3 only.
580 In accordance with ISP98, which of the following statements is correct? The issuer of a standby
letter of credit MUST:
A. validate the breach of any underlying transaction.
B. ensure the accuracy of any documents presented.
C. ensure the genuineness of any documents presented.
D. honour presentations that appear on their face to comply.
581 An issuer of a standby credit subject to ISP98 is responsible for:
A. accuracy of any document.
B. act of omission by the nominated bank.
C. observance of law as stated in the standby.
D. performance of any underlying transactions.
582 A reimbursing bank has received a valid claim under its reimbursement undertaking and is
instructed by the issuing bank NOT to honour the claim. In accordance with the URR525, the
reimbursing bank should:
A. request the claiming bank to cancel the claim.
B. instruct the claiming bank to contact the beneficiary.
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C. honour the claim and debit the issuing bank's account.
D. dishonour the claim as per the issuing bank's instruction.
583 An importer requires goods of a stipulated quality while the exporter requires certainty of
payment.
Which of the following would BEST meet all requirements?
A. Confirmed standby credit payable on demand calling for beneficiary's quality certificate.
B. Confirmed documentary credit payable at sight calling for beneficiary's quality certificate.
C. Confirmed documentary credit available by acceptance with drafts drawn on confirming
bank calling for third party quality certificate.
D. Unconfirmed documentary credit payable at sight with drafts on issuing bank calling for
third party quality certificate.
584 A German bank has added its confirmation to a documentary credit issued by a Turkish bank.
Which of the following risks is NOT borne by the confirming bank?
A. Fraud by the beneficiary.
B. Insolvency of the issuing bank.
C. Refusal of the issuing bank to pay against complying documents.
D. Government restrictions on funds transfer from the issuing bank.
585 Which of the following can be combined under a credit available with and requiring a draft drawn
on an issuing bank?
1. Payment.
2. Deferred payment.
3. Acceptance.
4. Negotiation.
Options:
A. 1 and 2 only.
B. 1 and 3 only.
C. 2 and 3 only.
D. 3 and 4 only.
586 In accordance with UCP 600, which of the following terms may NOT be altered on a transferred
documentary credit?
A. the amount.
B. required documents.
C. period for presentation.
D. amount of insurance cover.
587 A cumulative revolving documentary credit is opened with six months' validity and allowing for USD
25,000.00 to be drawn each month. If only the first month's shipment is effected in full, what is the
available amount in the fourth month?
A. USD 0.00.
B. USD 25,000.00.
C. USD 75,000.00.
D. USD 100,000.00.
588 A documentary credit which allows partial shipments has the following shipment schedule:
1,000 units shipped between 01 June XXXX and 30 June XXXX
2,000 units shipped between 01 July XXXX and 31 July XXXX
2,000 units shipped between 01 August XXXX and 31 August XXXX
3,000 units shipped between 01 September XXXX and 30 September XXXX
The beneficiary shipped the goods and presented documents as follows:
1. 1,000 units shipped on 15 June XXXX documents presented on 30 June XXXX
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2. 3,000 units shipped on 15 July XXXX and presented on 28 July XXXX
3. 2,000 units shipped on 31 July XXXX and presented on 15 August XXXX
4. 3,000 units shipped on 15 September XXXX and presented on 30 September XXXX
Which of the above sets of documents are complying?
A. 1 only.
B. 3 only.
C. 1 and 4 only.
D. 1, 2 and 4 only.
589 In accordance with UCP 600, which of the following alterations can a first beneficiary request a
transferring bank to make under a transferable documentary credit?
A. Extend the expiry date.
B. Decrease the unit price.
C. Decrease insurance cover.
D. Extend the period for shipment.
590 A transferable credit can do which of the following?
A. Protect the applicant from the risks of loss and error.
B. Allow the second beneficiary to obtain payment for complying documents.
C. Restrict the right of the second beneficiary to claim payment directly from the nominated
bank.
D. Permit the supplier to provide the intermediary trader with the security of a documentary
credit.
591 A documentary credit calls for a draft at 95 days bill of lading date drawn on the confirming bank.
The documentary credit is available by:
A. refinance.
B. acceptance.
C. sight payment.
D. deferred payment.
592 A documentary credit pre-advice is issued on 1 March for USD 510,000.00 with the following terms
and conditions:
- Part shipment allowed.
- Latest shipment date 30 April.
- Expiry date 15 May.
On 2 March the applicant requests an amendment prohibiting part shipment and extending the
expiry date to 30 May. In accordance with UCP 600 what MUST the issuing bank do?
A. Clarify with the applicant the period for presentation.
B. Issue the documentary credit as originally instructed.
C. Issue the documentary credit incorporating all the amendments.
D. Issue the documentary credit incorporating only the extended expiry date.
593 On 03 January XXXX an irrevocable documentary credit for USD 500,000.00 is confirmed. On 17
January XXXX the confirming bank receives an amendment cancelling the documentary credit
which it advises to the beneficiary. As at 18 January XXXX, what is the liability of both banks?
A. Issuing and confirming bank – USD 0.00.
B. Issuing and confirming bank USD 500,000.00.
C. Issuing bank – USD 0.00 Confirming bank – USD 500,000.00.
D. Issuing bank – USD 500,000.00 Confirming bank – USD 0.00.
594 Which of the following statements is correct when an assignment of proceeds has been effected
under a documentary credit issued in accordance with UCP 600?
A. The assignee must present complying documents to receive payment.
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B. The assignee will receive payment of the proceeds directly from the applicant.
C. The value of the documentary credit is reduced by the amount of the assignment.
D. The beneficiary has assigned its rights to the stated amount of proceeds to the assignee.
595 An applicant has given its counter indemnity to its bankers in connection with a delivery order.
Which of the following statements would NOT be included? The applicant:
A. indemnifies the bank against all actions, damages and costs.
B. undertakes to accept the underlying documents irrespective of discrepancies.
C. gives the issuing bank authority to debit its account for the full value pending inspection of
the goods.
D. undertakes that should the goods form part of a large consignment it will accept that
consignment and pay the full value.
596 A documentary credit is issued for an amount of GBP 60,000.00 and calls for drafts to be drawn at
30 days from bill of lading date. Documents have been presented with a bill of lading dated 09
November XXXX. Which of the following tenors on the draft will NOT be acceptable?
A. 09 December XXXX.
B. 30 days from bill of lading date.
C. 30 days after 09 November XXXX.
D. 30 days date, draft dated 09 November XXXX.
597 Which of the following documents MUST be signed?
A. Packing list.
B. Certificate of origin.
C. Commercial invoice.
D. Weight specification.
598 A credit requires an 'invoice' without further definition. Which of the following MUST be
considered a discrepancy?
A. Presentation of a document identified as a tax invoice.
B. An invoice which is not signed.
C. An invoice made out in a different currency to the credit.
D. An invoice issued for an amount in excess of that permitted by the credit.
599 A beneficiary presents complying documents to a confirming bank under a documentary credit
available by deferred payment. The beneficiary requests that the confirming bank purchase the
documents and prepay against its undertaking. In accordance with UCP 600, which of the following
may be the correct course(s) of action for the confirming bank?
1. Obtain the issuing bank's agreement prior to paying the beneficiary.
2. Refuse the beneficiary's request while undertaking to pay at maturity.
3. Prepay the deferred payment undertaking.
4. Obtain an agreement for recourse to the beneficiary.
Options:
A. 1 only.
B. 4 only.
C. 2 and 3 only.
D. 3 and 4 only.
600 A documentary credit advised to a beneficiary payable at sight calls for documents to include an
invoice made out in the name of the applicant. Documents presented to the negotiating bank by
the beneficiary include a customs invoice but no commercial invoice. All other terms and conditions
have been met. What action should the negotiating bank take?
A. Reject the documents as non-complying.
B. Refer to the issuing bank for authority to pay.
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C. Return the documents for amendment by the beneficiary.
D. Pay the documents as fully complying with the terms of the credit.
601 If the CIF or CIP value cannot be determined from the documents, a nominated bank will accept an
insurance document, which covers:
1. 110% of the gross amount of the invoice.
2. 100% of the gross amount of the invoice.
3. 110% of the documentary credit amount.
4. 110% of the amount for which payment, acceptance or negotiation is requested under the
credit.
Options:
A. 1 and 3 only.
B. 2 and 4 only.
C. 1, 2 and 4 only.
D. 1, 3 and 4 only.
602 A documentary credit for USD 150,000.00 calls for a full set of bills of lading and an insurance
certificate to cover all risks. The bill of lading presented indicates an on board date of 15 December.
Which of the following insurance documents are acceptable?
1. Policy for USD 185,000.00.
2. Certificate dated 17 December.
3. Declaration signed by a broker.
4. Subject to a franchise.
Options:
A. 1 and 2 only.
B. 1 and 4 only.
C. 2 and 3 only.
D. 3 and 4 only.
603 A documentary credit is issued for an amount of approximately GBP 40,000.00 payable with drafts
drawn at 30 days from date of shipment. Documents are presented on 22 September XXXX with
bills of lading dated 01 September xxxx and for value GBP 38,000.00.
Which of the following drafts would be accepted?
1. 30 days from 01 September XXXX for approximately GBP 40,000.00.
2. 30 days from date of shipment – value GBP 38,000.00.
3. Due 01 October XXXX – value GBP 38,000.00.
4. 30 days from bill of lading date 01 September XXXX – value GBP 38,000.00.
Options:
A. 1 and 2 only.
B. 1 and 3 only.
C. 2 and 4 only.
D. 3 and 4 only.
604 LC available by payment, states documents are to be presented within 14 days from the date of
shipment. The goods were shipped on 10th March 2009, which was within the latest date for
shipment. The LC expires on 23rd March 2009, then the documents must be presented latest by:
A. 10th March 2009
B. 23rd March 2009
C. 24th March 2009
D. 26th March 2009
605 LC calls for presentation of copy documents (but for B/L) to the applicant not later than 5 days after
shipment. The shipment happened on 10th March 2009, then which of the following dates are
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acceptable?
1. 07th March 2009
2. 15th March 2009
3. 09th March 2009
4. 16th March 2009
Options:
A. 2 & 4 only
B. All of the above
C. 1, 2 & 3 only
D. 2 only
606 LC requires presentation of an Inspection Certificate by ABC Ltd. The shipment happened on 10th
March 2009, the certificate was dated 08th March 2009, and the document was signed by ABC Ltd.
and dated on 13th March 2009. The goods description which were inspected evidenced alteration
and the same was authenticated by XYZ Ltd, then?
1. The document should by title of content evidence inspection took place before 10th March
2009.
2. The alteration cannot be authenticated by XYZ Ltd.
3. The authentication should evidence the capacity of XYZ Ltd.
4. The date of the document is 08th March 2009
Options:
A. 1, 2 & 4 only
B. 3 only
C. 1 & 3 only
D. 1 & 2 only
607 LC calls for invoice to be “stamped and signed”, the same is satisfied by:
1. Name of the party - typed.
2. Name of the party handwritten with signature.
3. Name of the party stamped with signature.
4. Name of the party perforated with signature.
Options:
A. 2, 3 & 4 only
B. 2 & 3 only
C. 1 & 4 only
D. 2 & 4 only
608 LC calls for presentation of Invoice, Packing list, Bill of Lading and Insurance certificate. The LC
number should be stated on Invoice, Packing list and Bill of Lading. The LC number was correctly
stated on the Invoice and Packing list, the same was misquoted in the Bill of Lading and Insurance
certificate, then which of the following will constitute for internal inconsistencies:
A. LC number internally inconsistent between Invoice, packing list and bill of lading.
B. LC number internally inconsistent between Invoice, packing list and insurance certificate.
C. Both A & B
609 Bank I being the LC issuing bank, received a set of documents from Bank P, the presenting bank.
The documents were discrepant, then the Issuing bank:
1. May advise all discrepancies orally and then via Swift within 5 banking days.
2. May advise 2 discrepancies orally and balance 3 discrepancies via Swift within 5 banking days.
3. Should advise all discrepancies orally only, within 5 banking days.
4. Should advise all discrepancies via Mail only within 5 banking days.
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Options:
A. All of the above
B. 1 only
C. 1 and 2 only
D. 3 & 4 only
610 A refusal advice from the Issuing bank:
1. Mentions that the documents are rejected.
2. Mentions all discrepancies.
3. Has been sent within 5 working days from the date of receipt of documents.
Which of the following options constitute a valid discrepancy advice?
A. Discrepancy advice mentioning all of the above.
B. Discrepancy advice mentioning 1 only.
C. Discrepancy advice mentioning 2 and 3 only.
611 Which of the following is not inclusive under the definition of “Exporting country”?
A. Country of origin of goods
B. Country of receipt of goods by carrier
C. Country where the beneficiary is registered
D. Country where the goods are shipped or dispatched
612 The version applicable to e-UCP will be:
1. Indicated on the credit.
2. The version in effect on the date the credit is issued (if the credit does not state the version).
3. The version in effect on the date of amendment which is accepted by the beneficiary (if the
credit or amendment does not state the version).
4. The version in effect on the date of acceptance of the amendment by the beneficiary (if the
credit or amendment does not state the version).
Options:
A. 1, 2 & 4 only
B. 1, 2 & 3 only
C. 1 & 2 only
D. 2 & 4 only
613 A credit was issued subject to e-UCP, to the tune of Rs.100,000.00. The credit permits only paper
presentation of the stipulated documents being:
 Manually signed invoice
 Indemnity issued in favor of applicant by the beneficiary’s bankers.
The beneficiary draws to the tune of Rs.50,000.00 in the form of paper presentation of documents,
the next presentation to the tune of Rs.50,000.00 was in the form of electronic records, then:
A. UCP applies for the drawing in Paper form, and e-UCP applies for the drawing in Electronic
form.
B. UCP alone applies for both the drawings
C. E-UCP alone applies for both the drawings
614 If shipment samples are to be sent within 2 days of shipment and the shipment is effected on 10th
March 2009, then which of the following combinations are acceptable?
1. Samples sent on 07th March
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Options:
A. All of the above
B. 2, 3 & 4 only
C. 3 & 4 only
D. D. 2 & 4 only
615 Credit issued by Citibank India available by Acceptance with Citibank US with tenor of 60 days from
Bill of Lading date. The beneficiary can draw drafts on:
1. Citibank India
2. Citibank US
3. Any Bank in US
4. None of the above
Options:
A. 1 only
B. 2 only
C. Either 1 or 2
D. 3 only
616 The LC is issued for maximum of $10,000.00. The credit calls for Invoice, drafts and other shipping
documents. The invoice is presented for $12,000.00 and drafts are presented for $10,000.00, then
the Negotiating bank MAY:
1. Negotiate up to $10,000.00
3. Return docs to Beneficiary & get corrected Invoices for $10,000.00
4. Return docs to Beneficiary & get corrected Drafts for $12,000.00
Options:
A. 1 only
B. 2 only
C. 1 & 3 only
D. 2 & 4 only
617 A Nominated bank is not obligated to Pay, Accept, Incur a deferred payment undertaking or
Negotiate documents unless:
A. Expressly agreed to by the Nominated Bank and so communicated to Issuing bank
B. Expressly agreed to by the Nominated Bank and so communicated to the Beneficiary
C. Expressly agreed to by the Nominated Bank and the Documents are scrutinized and
discrepancies are advised to presenter
D. Expressly agreed to by the Nominated Bank and the Documents are forwarded to Issuing bank
618 An LC called for presentation of Drafts in duplicate, one manually signed Invoice, one packing list
and one copy of "shipped on board" B/L. No period of presentation was specified in the LC. The
beneficiary presented the documents directly to the issuing bank on 28th November. The B/L copy
presented indicates the date of issue as 2nd November, and does not have a shipped on board
notation. Following are the discrepancies that the Issuing bank would quote:
A. Late presentation
B. B/L does not indicate “shipped on board”
C. Both of the above
D. Documents are clean
619 If a credit calls for shipment of 10,000 meters of fabric for USD 20,000.00, the beneficiary may ship
10,300 meters and claim USD 20,000.00
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Options:
a, c & d only
a, b & b only
b, c & d only
a, b & c only
620 The applicant showed to the beneficiary a written undertaking from the issuing bank for its
agreement to issue a letter of credit subject to UCP 600. Subsequently, prior to the issuance of the
LC, the applicant went bankrupt. Then, the Issuing bank:
A. Is bound to issue the LC as per their written undertaking to the applicant
B. Is not bound to issue the LC as no prior notification was sent to the Beneficiary
C. Can only cancel the LC after issuing the same, provided the beneficiary consents for the
cancellation
D. Can issue the LC, and state that payment under the LC would be subject to availability of funds
in the applicant’s account
621 A Road transport document:
A. Must indicate the number of Originals issued
B. Need not indicate the number of originals issued
C. Must indicate the number of originals issued and all originals must be presented at counters of
the bank, if full set is required by the credit
D. Should not indicate the number of originals issued
622 The LC was issued for $ 10,000.00; the first beneficiary transferred the credit to the tune of $
8,000.00. The insurance cover asked for in the Master LC was 110%. The percentage of insurance
cover to be asked in the transferred LC if the 1st beneficiary chooses not to take a separate
insurance is:
A. 110%
B. 127.5%
C. 137.5%
D. 140%
623 A credit for USD 60,000.00 covering shipment of silk gowns, stated that the shipment to be made
on or before 21 July 2009. It did not stipulate the quantity of goods. Shipment has to be effected by
air and the airway bills had to indicate the actual flight number and date.
The beneficiary presented documents totaling USD 56,800.00 for negotiation. The documents
included five sets of airway bills, issued on various dates, with details as follows:
AWB #1 dated 20 July 2009 : Flight VC297 dated 20/7
AWB #2, 3, 4 dated 21 July 2009 : Flight HL484 dated 21/7
AWB #5 darted 22 July 2009 : Flight XC369 dated 21/7
The documents would be discrepant due to which of the following:

A. Late Shipment
B. Shipment made in three lots
C. Partial shipment effected
D. D. No discrepancy – Docs are clean
624 An LC in which Partial shipment is prohibited is issued for USD 100,000.00 with a tolerance of +10%
applicable. Subsequently an amendment is issued reducing the LC amount to USD 90,000.00. The
beneficiary did not expressly communicate his acceptance/rejection to the amendment, however,
presented documents for USD 98,000.00. Then:
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A. The beneficiary has accepted the amendment and documents presented are clean.
B. The beneficiary has rejected the amendment, but documents are discrepant as partial shipment
is prohibited.
C. The presentation is not valid, as the beneficiary has not mentioned whether the amendment is
accepted/ rejected.
D. The presentation is clean, though beneficiary’s acceptance/rejection is not determinable.
625 A Marine bill of lading acts as an:
1. Acknowledgement of receipt of goods by carrier
2. Document of title of goods
3. Evidence for contract of carriage
4. Evidence of contract of agreement between the buyer and forwarding agent
Options:
A. 1, 2 & 4 only
B. 2 & 3 only
C. 1, 2 & 3 only
D. All of the above
626 The beneficiary presented documents to the negotiating Bank N on 30th November, under a freely
negotiable LC available by payment and expiring at the counters of the negotiating bank on 30th
November. Bank N scrutinizes documents on 2nd December, and sends the clean documents to
Bank I, the issuing bank. Bank I rejects the presentation stating LC expired as the discrepancy. Then:
A. The beneficiary would receive payment only when the Issuing bank provides a waiver to the
discrepancy.
B. The beneficiary should receive payment once the negotiating bank certifies that the documents
were presented at its counters on the expiry date.
C. The beneficiary should contact the applicant for a waiver, and would receive payment once the
applicant accepts the discrepancies.
D. The issuing bank is wrong in rejecting the documents, as the beneficiary presented documents
on the expiry date itself.
627 One set of Drafts drawn on the drawee bank presented under a LC subject to UCP 600 expiring on
30 August 2009 was accepted on 30 July 2009 for a tenor of 30 days sight but was unpaid on
maturity 30 August 2009. According to UCP 600 the beneficiary made a new set of "replacement"
Drafts drawing on the issuing bank on 3 September 2009. The issuing bank:
A. Can refuse to pay the Drafts, as the same is presented after LC expiry.
B. May pay the Draft, but only after scrutinizing the documents presented by the beneficiary.
C. Can refuse to pay the Drafts, and instead instruct the beneficiary to claim from the Reimbursing
bank.
D. Has to honor the draft
628 The credit states that the shipment date is around 8th March, which of the following Bill of Lading is
acceptable:
A. BL issued on 16th March with an on board date of 14th March
B. Preprinted On board BL with an issue date of 7th March and an onboard notation as 14th March
C. BL with an onboard date as 12th March
D. BL with an onboard date as 2nd March
629 The LC expires on Saturday, 30th April 2009 and the latest shipment date mentioned in the credit is
5 days after 4th of April 2009, which of the following presentation is acceptable, when there is no
presentation period mentioned in the Credit. (Assumption: No banking holidays other than
Saturday and Sunday in April 2009):
A. Documents presented on 22nd April with on board date as 10th April
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B. Documents presented on 2nd May as 30th and 1st is Saturday and Sunday, with on board date 8th
April
C. Documents presented on the 25th of April with on board date as 2nd April
D. Documents presented on the 29th April with on board date as 7th April
630 Which of the following statements are TRUE:
1. Carrier need not be identified in a Charter Part Bill of Lading
2. Carrier need not be identified in a Multimodal Transport Document
3. Carrier need to be identified in an Ocean Bill of Lading
4. Carrier need not be identified in a Non-negotiable Seaway bill
Options:
A. 1 only
B. 1,2 & 3 only
C. 1,3 & 4 only
D. 2 & 3 only
631 A credit could be made available with Issuing Bank in the following modes EXCEPT:
1. Sight
2. Usance
3. Deferred Payment
4. Negotiation
Options:
A. 1 & 2 only
B. 3 only
C. 4 only
D. 1 & 4 only
632 In a revocable credit available by deferred payment with Nominated Bank, the Issuing bank upon
issuance of notice of amendment or cancellation is still bound to reimburse if
A. Documents are presented at the counters of Nominated bank within presentation period
B. Nominated bank has scrutinized documents and advised discrepancies to the presenter.
C. Nominated bank has scrutinized documents and certified as compliant with credit terms.
D. Nominated bank has rejected documents
633 Credit issued by Citibank India available by Sight payment with Citibank South Africa, the credit is
confirmed by Citibank US. The confirming bank is NOT obligated to pay, if the documents are
presented at the counters of:
1. Citibank India
2. Citibank US
3. Citibank South Africa
4. Any Bank in US
Options:
A. 1 only
B. 2 & 3 only
C. 2 only
634 L/C was issued by ‘X’ Bank on 01st October 2009, in favor of Beneficiary B. On 10th October 2009, an
amendment was issued for the following clauses:
 Extend Latest Shipment Date from 20th October 2009 to 01st November 2009
 L/C number to be stated on all invoices.
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The documents presented at the negotiating bank’s counters consisted of 3 sets of B/L evidencing
the Shipment date as 25th October 2009 and 4 sets of Invoice. The invoice does NOT state the LC
number (as required by Clause b of amendment). The Issuing bank received documents from
Negotiating bank and the discrepancy highlighted to the Negotiating bank would be :
A. Late Shipment
B. Invoice does not state L/C number
C. Both A & B
635 If a credit issued by MT999 and without stating “full details to follow”, do you regard the
transmission as the ‘operative instrument’?
A. Credit is sent via SWIFT medium, hence it is an operative instrument
B. Credit does not state “full details to follow”, hence it is an operative instrument
C. Both A & B are true
D. Credit is not an Operative instrument
636 An MT734 (Discrepancy Advice) sent by the Issuing bank to the presenter should satisfy the
following EXCEPT:
A. Should be sent within 5 working days following the date of receipt of documents
B. State at least one discrepancies in a single communication
C. Should be advised through expeditious means
D. Should state whether it is holding the documents at the disposal or is returning them to the
presenter
637 A credit is issued which states that all bank charges, other than those of the issuing bank, are for
account of the beneficiary. The credit eventually expires unutilized and the beneficiary did not pay
the advising charges, the advising bank should claim the charges from:
A. Beneficiary
B. Issuing Bank
C. Applicant
D. Negotiating Bank
638 The credit can be transferred only on the terms and conditions specified in the Original Credit with
the exception of the following BUT:
A. Percentage of Insurance
B. The expiry date
C. The period of shipment
D. Goods description
639 In a Charter Party bill of lading, which of the following NEED NOT be identified:
A. Agent
B. Master
C. Owner
D. Carrier
640 Credit calls for an Airway Bill, then the AWB presented should evidence:
A. Copy of Carrier
B. Copy for Consignee
C. Original for Shipper/Consignor
D. Original for Carrier
641 If credit calls for Courier receipt then, the document NEED NOT indicate:
A. Name of the Courier company
B. Stamp, sign or any other authentication by Courier service
C. Date of Pickup
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D. Port of Loading
642 The shipment period in a LC states “End” of July, then shipment should be effected between
A. 21st to 31st of July
B. 20th to 31st of July
C. 21st to 30th of July
D. 20th to 30th of July
643 Which of the following are FALSE with respect to Insurance document:
1. Insurance documents issued and signed by underwriters are not acceptable
2. Cover Notes issued by Brokers are acceptable
3. Presentation of an insurance Certificate instead of an insurance policy is allowed
4. The beneficiary should present all originals insurance document, if the document evidences
that more than one original has been issued
Options:
A. 1 only
B. 2 & 4 only
C. 1, 2 & 3 only
D. 4 only
644 A credit is issued for USD 20,000 CFR with partial shipments prohibited. The beneficiary may
present documents for:
A. USD 18,975.00
B. USD 19,000.00
C. USD 18,500.00
D. USD 21,000.00
645 LC requires Inspection Certificate to be issued by “Independent Surveyor”, t he certificate can be
issued by anyone EXCEPT:
A. Beneficiary
B. Applicant
C. Manufacturer
D. Freight Forwarder
646 An irrevocable Reimbursement Undertaking cannot be amended or cancelled without the
agreement of :
1. Beneficiary
2. Issuing Bank of the Credit
3. Claiming Bank
4. Reimbursing Bank
Options
A. 1 & 3 only
B. 1,2 & 3 only
C. 3 only
D. 2 & 3 only
647 Which of the following statement is true?
1. A Reimbursing Bank which has issued its RU Amendment shall be irrevocably bound as of the
time when the Claiming Bank communicates its acceptance of the RU amendment to the
Reimbursing bank.
2. The Reimbursing Bank which issued its undertaking is bound to agree to amend its undertaking
when the Issuing Bank amends its authorization.
3. A Reimbursing Bank is not required to accept or reject an Irrevocable Reimbursement
Amendment until it has received acceptance or rejection from the Claiming Bank to its RU
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Amendment
4. A Reimbursement Undertaking must not have an expiry date or latest date for presentation
Options:
A. 1 & 3 only
B. 1 only
C. 3 only
D. 2 & 4 only
648 A reimbursement claim:
1. must be authenticated
2. must, in the case of a RU, comply with the terms and conditions of the RU
3. must certify all terms and conditions are complied with
4. must be in the form of teletransmission
The above is not true except for :
A. 3 & 4 only
B. 2 only
C. 1 & 3 only
D. 1, 2 & 3 only
649 If a Reimbursing Bank refuses to issue its irrevocable undertaking, it must inform without delay
A. Issuing Bank
B. Beneficiary
C. Claiming Bank
D. Issuing Bank and Claiming Bank
650 Where the availability of the Credit is restricted , the details required to be shown on a
Reimbursement Authorization are:
1. Credit number, currency & amount, tolerance if any,
2. Claiming bank
3. charges for account of party
4. Tenor of draft(s) to be drawn & drawer if reimbursing bank is requested to accept and pay
5. Rules incorporated
Options:
A. 1, 3 & 4 only
B. 1, 3 & 5
C. All of the above
D. 1, 2 & 3 only
651 If the Reimbursing Bank is unable to pay, it must notify:
A. Claiming Bank
B. Issuing Bank and Claiming Bank
C. Issuing Bank
D. none of the above
652 The following statements are incorrect except for:
A. Reimbursing banks are responsible for ‘policing’ of expiry dates
B. The Issuing Bank must initiate action to cancel RA as appropriate to the Credit
C. Reimbursing Banks assume liability for honoring a claim that indicates that negotiation was
made under reserve
D. Reimbursing Banks is obliged to process requests for back value.
653 On Jan 1, a claim was received with reimbursement due on Jan 18 ( Jan 6 & 7 being a Saturday
and Sunday). When must the Reimbursing Bank provide notice of non-reimbursement? (Note: A
pre-debit notification period of 3 working days is required)
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A. January 4
B. No later than January 18
C. January 4 or January 18
D. January 9
654 On Monday Jan 1, a claim was received . Reimbursing Bank is required to provide a 3 working days
pre-debit notification to the Issuing Bank. The Reimbursing Bank:
A. Must effect payment on January 4
B. Must effect payment on January 9
C. May effect payment between January 4 - 9
D. Must effect payment on January 1.
655 The following statements below with regards to the Issuing Bank’s primary obligation under a B2B
reimbursement arrangements is/are correct except:
1. The Issuing Bank shall not require a Claiming Bank to provide a certification of compliance
2. The Issuing Bank shall provide the Reimbursing Bank in good time with proper instructions and
authorization to honor claims
3. The Issuing Bank shall be relieved from its obligation to provide reimbursement if and when
reimbursement is not received by the Claiming Bank from the Reimbursement Bank which had
issued its irrevocable reimbursement undertaking
4. The Issuing Bank shall not be responsible to the Claiming Bank for any loss of interest if
Reimbursing Bank is responsible for any delay in providing reimbursement.
5. Where the Reimbursing Bank’s charges are for account of another party, the Issuing Bank is not
obliged to reimburse the charges in the event the Credit is not drawn.
Options:
A. 1 only
B. 1, 2 & 3 only
C. 3, 4 & 5 only
D. 1 & 2 only
656 Where non-payment of a reimbursement claim is due to early submission , the Reimbursing Bank
must inform?
A. Issuing Bank
B. Claiming Bank
C. Issuing and Claiming Bank
D. Beneficiary
657 To cancel a reimbursement authorization for an unexpired LC, the Issuing Bank has to send an
authenticated transmission to:
A. Nominated Bank
B. Advising Bank in a freely negotiable Credit
C. Reimbursing Bank
D. All of the above
658 Cancellation of a RA while the Credit is still valid would require the Reimbursing Bank do the
following but:
1. Log and note that where the RA is revocable, it is cancelled for any future claims
2. Where an RU has been issued, it sends an RU cancellation to the Claiming Bank without delay
3. Where an RU has been issued, it sends an RU cancellation to the Claiming Bank without delay
and await their acknowledgement of acceptance or rejection to the cancellation before
reverting to the Issuing Bank without delay.
4. Where an RU has been issued, it sends an RU cancellation to the Claiming Bank and
acknowledges acceptance of the cancellation to the Issuing Bank without delay
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Options:
A. 1 only
B. 2 & 4 only
C. 4 only
D. 1 & 3 only
659 The Version applicable to E-UCP will be:
1. Indicated on the Credit
2. The Version in effect on the date the Credit is issued(if the credit does not state the version)
3. The Version in effect on the date the amendment is accepted by beneficiary (if the credit or
amendment does not state the version)
4. The Version in effect on the date of the amendment which is accepted by the beneficiary(if the
credit or amendment does not state the version)
Options:
A. 1,2 & 4 only
B. 1,2 & 3 only
C. 1 & 2 only
D. 2 & 4 only
660 A credit was issued subject to E-UCP to the tune of Rs. 100000.00. The credit permits only paper
presentation of following documents
 Manually signed Invoice
 Indemnity issued in favour of the applicant by the beneficiary’s bankers.
The Beneficiary draws to the tune of Rs. 50000.00 in the form of paper presentation of documents,
the next presentation to the tune of Rs. 50000.00 was in the form of electronic record then:
A. UCP applies for the drawing in Paper Form & E-UCP applies for the drawing in Electronic form
661 To cancel a reimbursement authorization after the expiry of LC, the Issuing Bank has to send an
authenticated transmission to:
A. Nominated Bank
B. Advising Bank in a freely negotiable Credit
C. Reimbursing Bank
D. All of the above
662 A Reimbursement Authorization cannot be amended or cancelled without the agreement of :
1. Beneficiary
2. Issuing Bank of the Credit
3. Applicant
4. Reimbursing Bank
Options:
A. 1 & 2 only
B. 1 only
C. 4 only
D. 1 & 4 only
E. None of the above
663 In processing a reimbursement claim, a Reimbursing Bank shall :
1. Have a reasonable time not to exceed 3 banking days following the date of receipt of the claim
2. If required, have pre-notification period in addition to the processing period
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3. Give reason for non-payment of a claim only when a RU has been issued
4. Effect reimbursement to any bank authorized by the Claiming Bank
Options:
A. 1 only
B. 1 & 2 only
C. 1 & 3 only
D. All of the above except 4
664 On Monday Jan 1, a claim was received with reimbursement due on Jan 18. (Jan 6 & 7 being a
Saturday and Sunday). Reimbursing Bank can choose to:
1. Disregard the reimbursement claim
2. Disregard the reimbursement claim but must so inform the Claiming Bank without any delay
3. Disregard the reimbursement claim but must so inform the Claiming Bank and Issuing Bank
without any delay
4. Wait till Jan 18 and effect payment or give notice of non-reimbursement.
Options:
A. 1 only
B. 2 only
C. 3 only
D. 2 & 4 only
665 If a confirming bank refuses to add its confirmation to the LC, it must inform without delay:
A. Issuing Bank
B. Beneficiary
C. Applicant
D. Issuing bank and Beneficiary
666 If a confirming bank refuses to add its confirmation to the amendment to the LC, it must inform
without delay:
A. Issuing Bank
B. Beneficiary
C. Applicant
D. Issuing bank and Beneficiary
667 The additional conditions in LC states “Shipment to be effected on Full Container Load (FCL) basis”.
The condition should be satisfied in which of the documents:
A. Invoice
B. Bills of Lading
C. Separate Certificate should be issued by the Carrier/Agent stating the above condition is
fulfilled
D. None of the documents since the L/C does not specify the document which need to evidence
the above condition
668 Credit does not prohibit transshipment, which of the following is a MUST to accept an Ocean Bill of
Lading evidencing Transshipment:
1. Entire ocean carriage is covered by one and the same bill of lading
2. Relevant cargo is shipped in Containers, Trailers and/or “LASH” barges
3. Clause is incorporated in the B/L stating that the Carrier reserves the right to transship
4. Relevant cargo is shipped in Containers, Trailers and/or “LASH” barges and the entire ocean
carriage is covered by one and the same bill of lading
Options:
A. 1 only
B. 1,2 & 3 only
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C. 3 & 4 only
D. All of the above
669 The Latest shipment date mentioned in the credit is end of April and the tenor is 30 days after
1. 21st of May
2. 19th of May
3. 20th of May
4. 31st of May
Options:
A. 1 and 2 only
B. 2 and 4 only
C. 1 and 3 only
D. 1 only
A. An Invoice in an Original letterhead.
B. Photocopy of a manually signed invoice.
C. Carbon copy of invoice with a separate marking stating it is Original.
671 L/C calls for Courier receipt evidencing dispatch of copy documents not later than 2 days after
shipment date i.e. 01/01/2009. Then the courier receipt evidencing which of the following dates is
acceptable?
1. 02nd January 2009
2. 04th January 2009
3. 31st December 2008
4. 01st January 2009
Options:
A. 1 only
B. 1 and 3 only
C. 1, 3 and 4 only
D. 2 and 3 only
672 Unless authorized in the credit, an Invoice evidencing which of the following are not acceptable?
1. Deduction of advance payment charges of $ 5000
2. Bank charges of $ 1000
3. Samples worth $ 150
4. Incoterms – CIF Singapore
Options:
A. 1 and 3 only
B. 1, 2 and 3 only
C. 2 and 3 only
D. 1 and 4 only
673 Which of the following are NOT true with respect to Drafts?
A. Draft need to be dated.
B. Draft need to evidence the drawee.
C. Draft need to evidence the tenor.
D. Draft need to be drawn on the payee.
674 A credit calls for an insurance documents in 3 folds. Insurance document is issued in 2 originals and
the same is indicated on the face of the document.
A. Presentation of only 2 originals is acceptable.
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B. Presentation of both originals and 1 photocopy of the document is acceptable.
C. Presentation of only one original and 2 photocopies of the document is acceptable
D. Both B and C above.
675 Banks will not accept which of the following documents when dated prior to the issue date of the
credit.
1. Transport documents
2. Insurance documents
3. Invoice
4. Certificate of Origin
Options:
A. 1 and 2 only
B. 1, 2 and 4 only
D. All of the above
676 Upon request by the applicant, the issuing bank finally waived the previously advised valid
discrepancy for the first installment shipment made after the latest shipment date in an LC subject
to UCP that clearly stated the shipping period of three installment shipments. However, the issuing
bank did not clarify whether or not the DC was still valid for subsequent installment shipments.
After a period of time, the beneficiary presented compliant documents for the second installment
shipment made according to the shipping schedule stated in the LC. Then the Issuing bank:
A. Needs to honor the second presentation, as the same is compliant with the credit terms.
B. Needs to honor the compliant presentation as they had not stated in their previous discrepancy
advice that the LC was not valid for subsequent installment shipments.
C. Needs to honor the compliant presentation, as the applicant had previously accepted the late
presentation for the first installment.
D. Need not honor the presentation as the credit ceased to exist for any subsequent installment
presentation.
677 The expression “about” is used to allow a difference of 10% more or 10% less. When a similar
expression “On or about” is used with dates it means
A. + / - 10 days (both days excluding)
B. + / - 5 days (both days excluding)
C. + / - 10 days (both days including)
D. + / - 5 days (both days including)
678 Under a Credit which prohibits transshipment, banks will accept a combined transport document
which evidences that transshipment will take place
A. If the entire voyage is covered by one and the same combined transport document.
B. Only if the entire voyage is covered by one and the same multimodal transport document and
indicates that the relevant cargo is shipped in Container(s), Trailer(s) and/or Lash barge(s).
D. Only if the entire voyage is covered by one and the same combined transport document and
has a clause ‘The Carrier reserves the right to transship’.
679 Under a confirmed credit available by payment, beneficiary submits documents on 31st May, and
then corrected documents on 3rd June Thursday, to the non-confirming nominated bank. Latest by
when can he expect payment or a refusal advice? (Saturdays and Sundays are the only non-banking
days)
A. 7 June
B. 8 June
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C. 10 June
D. 4 June
680 Negotiation is defined as
1. Giving value for Complying documents.
2. Checking the documents and certifying as clean by the Negotiating bank authorized in the
credit.
3. Giving an undertaking to pay for complying documents at a future date.
4. Purchasing drafts of beneficiary by blocking the beneficiary lines only, and not by blocking
issuing bank’s lines.
Options:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 2 and 4 only
681 The LC is issued for maximum of $10,000.00. The credit calls for Invoice, drafts and other shipping
documents. The invoice is presented for $12,000.00 and drafts are presented for $10,000.00, then
the Negotiating bank MAY:
3. Return docs to Beneficiary & get corrected Invoices for $10,000.00
4. Return docs to Beneficiary & get corrected Drafts for $12,000.00
Options:
A. 1 only
B. 2 only
C. 1 & 3 only
D. 2 & 4 only
682 A Nominated bank is not obligated to Pay, Accept, Incur a deferred payment undertaking or
Negotiate documents unless:
1. Expressly agreed to by the Nominated Bank and so communicated to Issuing bank
2. Expressly agreed to by the Nominated Bank and so communicated to the Beneficiary
3. Expressly agreed to by the Nominated Bank and the Documents are scrutinized and
discrepancies are advised to presenter
4. Expressly agreed to by the Nominated Bank and the Documents are forwarded to issuing bank
Options:
A. 1 & 2
B. 1 & 2 & 3
C. 2 & 4
D. 2 Only
683 A credit calls for an Airway Bill consigned ‘To Order of Issuing Bank”. The AWB presented may be
consigned
A. To Order of Issuing Bank
B. To Issuing Bank
C. Either (A) or (B) above
684 If the credit specifically requires presentation of charter party contract, then:
A. Charter Party contract can be presented
B. Charter party contract need not be presented
C. Charter party contract must be presented and examined by the bank to check the internal
TF Q BANK Page 36
consistency between documents
D. Charter Party Contract must be presented but does not require examination of the document
by the bank.
685 A Marine/ocean Bill of Lading can be signed by
A. Carrier
B. Master
C. Agent of carrier or Master
D. All of the above
686 Negotiation is defined as:
credit.
Options:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 2 and 4 only
687 LC was issued for $ 25,000.00 and disallows Partial shipment, then which of the following draw
downs are acceptable:
A. $ 23,750.00
B. $ 22,500.00
C. $ 26,000.00
D. $ 22,750.00
688 In a Road Transport document, Carrier can be named as:
1. Actual Carrier
4. Issuing Carrier
Options:
A. 1 and 4 only
B. None of the above
C. 2, 3 and 4 only
D. All of the above
689 If the advising bank cannot establish the authenticity of the credit, then:
1. Advising bank need to contact the issuing bank for clarification.
2. Advising bank can advise the credit to the Beneficiary but inform that it has not been able to
establish the authenticity of the credit.
3. Advising bank cannot advise the credit and need to contact the issuing bank for clarification.
4. Advising bank may inform the beneficiary that it has contacted the issuing bank for clarification.
Options:
A. 3 only
B. 1, 3 and 4 only
C. 1 only
D. 1 and 2 only
690 When an MT700 states ‘Mail confirmation to follow’, an advising bank should:
TF Q BANK Page 37
A. Advise the credit stating that the mail confirmation will be the operational credit
B. Give a pre-notice to the beneficiary without responsibility as information only and seek
clarification from issuing bank.
C. Advise the credit.
D. Advise the credit once the mail confirmation is received.
691 Certificate of Origin issued by the manufacturer and legalized by the Chamber of
Commerce had an alteration. Please state, which of the following parties must authenticate this
alteration for the document to be in order.
A. Manufacturer, being the issuer of the document.
B. Chamber of Commerce, being the legalizing authority.
C. Both the parties involved.
692 Which of the following document(s) have to be dated even if the credit does not expressly so
require?
1) Drafts
2) Invoice
3) Transport documents
4) Insurance Document
5) Beneficiary’s certificate (in all cases irrespective of certification/data contents).
Options:
A) 1, 2, 3, 4 Only
B) 2, 3, 4, 5 Only
C) 1, 3, 4 Only
D) All the Above
693 L/C calls for a cargo receipt. The last shipment date is 30.06.10, expiry date is 21.07.10 and
presentation period is 21 days after the shipment date. The cargo receipt is dated 26.06.10. Which
of the following statements is correct?
A. Beneficiary can present the documents within 26.07.10
B. Beneficiary can present the documents within 21.07.010
C. Beneficiary cannot present documents as it is late shipment
D. Beneficiary can present document only on 21.07.10
694 Which of the following is/are not transport documents as per UCP?
1) Delivery Order.
2) Mate Receipt.
3) Forwarder cargo receipt.
4) Railway Receipt.
5) Non-negotiable copy of Bill of lading.
Options:
A) All the above
B) None of the above
C) All the above other than 4
D) All the above other than 4 and 5
695 Stale documents are those that are presented ___ days later than the date of shipment.
a) 7 days
b) 15 days.
c) 21 days.
d) 30 days.
696 L/C stipulated shipping marks as “Made in USA”. B/L evidenced shipping marks “Handle with
TF Q BANK Page 38
utmost Care…. Made in USA”. Is this acceptable?
a) Yes.
b) No.
697 The tenor as per L/C is 60 days from B/L date, which is 12th May 2009. Which of the following ways
are acceptable while stating the tenor in the draft?
1) 60 days after 12th May 2009.
2) 60 days after Bill of Lading date.
3) 60 days after Bill of Lading date. B/L date 12th May 2009 is mentioned at the bottom of the
draft.
4) 60 days date (draft date is 12th May 2009).
Options:
A) 1 and 3 only
B) 1, 3 and 4 Only
C) 1, 2 and 3 Only
D) All the above
698 If the tenor stipulated in the L/C is “30 days Sight”, the maturity date in case of a
discrepant document, where the Issuing bank has provided a notice of refusal and subsequent
approval is:
A. 30 days from date of receipt of documents by the Issuing bank.
B. 30 days from date of receipt of documents by the presenting bank.
C. 30 days from date of receipt of documents by the applicant.
D. 30 days from issuing bank’s receipt of acceptance of discrepancies by applicant
699 22. L/C calls for a shipment of 100 dozens of pens, without allowing partial shipment. Which of the
following is/are acceptable?
1) Invoice showing 95 dozens of pen.
2) Invoice showing 100 dozens of pen.
3) Invoice showing 102 dozens of pen
4) Invoice showing 102 dozens of pen, claiming amount of 100 dozens only and stating that 2
dozens are free of cost.
Options:
A) 2 Only
B) 1, 2 and 3 Only
C) 2 and 4 Only
D) All the above
700 The value of the L/C is USD10,000.00 and the description of goods is “100 Kgs of polypropylene”
only. Partial shipments are prohibited. Which of the following is/are acceptable?
1) Invoice for USD10,000.00 showing shipment of “100 Kgs of polypropylene”.
2) Invoice for USD9,500.00 showing shipment of “100 Kgs of polypropylene.”
3) Invoice for USD10,000.00 showing shipment of “95 Kgs of polypropylene.”.
4) Invoice for USD9,500.00 showing shipment of “95 Kgs of polypropylene”.
Options:
A) 1 and 3 Only
B) 2 and 4 Only
C) 1 and 2 Only
D) All the above
701 The B/L shows the following details (Port of Loading as per L/C is Mumbai):
Pre carriage: Vessel X Place of Receipt: Kolkatta
Ocean Vessel: Vessel Y Place of Loading: Mumbai
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Port of Discharge: Rotterdam
Shipped on Board notation is as under:

Shipped on board 12.12.09 on vessel Y at Mumbai Port.
Will you consider the above as a case of transshipment?

a) Yes.
b) No.
702 Which of the following statement(s), if present in the Bill of lading will make it a claused B/L?
a) Packing may not be seaworthy.
b) Packing is not seaworthy.
c) Both the above
d) None of the above.
703 L/C called for the document: “Airway bill showing actual date of dispatch”. The following particulars
are available:
Date of issue: 20.01.2009.
Actual Flight no. and date (a separate notation): LH175 dt. 22.01.2009.
Flight no. and date (in the box marked “for carrier’s use only”): LH175/23.01.2009.
Which of the following is the actual date of shipment under the L/C?
a) 20.01.2009
b) 22.01.2009
c) 23.01.2009
d) The document is discrepant.
704 L/C called for an insurance policy covering “All Risks”. Which of the following document(s) is/are
acceptable?
1) Insurance certificate with “All Risks covered” notation.
2) Insurance policy with “All Risks” notation also stating “excluding war and fire risks”.
3) Insurance policy covering “Institute Cargo Clauses (A)”.
Options:
A) 1 Only
B) 1 and 3 Only
C) None of the above
D) All the above
705 The Ocean B/L issuance date is 26.01.09, on board notation bears the date 23.01.09. Which of the
following Insurance documents is/are acceptable?
1) Insurance policy dated 23.01.09
4) Insurance policy dated 27.01.09 stating that insurance cover is effective from 23.01.09
5) Insurance policy dated 27.01.09 stating that insurance cover is effective from 26.01.09
Options:
A) All the above
B) 1 and 4 Only
C) 1, 2, 4 and 5 Only
D) None of the above
706 Invoice is drawn as follows:
Gross value of goods $25,000.00 FOB Singapore
Less: Discount $ 2,000.00
TF Q BANK Page 40
Less: Advance Payment $ 3,000.00
Payment under L/C $20,000.00 FOB Singapore
Unless otherwise stipulated in the credit, the value of the Insurance policy should be:
A. 110% of USD25,000.00
B. 110% of USD23,000.00
C. 110% of USD20,000.00
D. 100% of USD25,000.00
707 Insurance policy states that the policy is valid for 90 days from the date of issuance and all claims
should be made before this date. The shipment is made on 10.01.2009. The policy was issued on
09.01.2009. The shipment is from India to Pakistan. Shipping Co.’s certificate shows ETA as
15.01.2009. Will you accept the insurance policy?
a) Yes, the insured has sufficient time to lodge the claim with the insurance company.
b) No
708 Which of the following statements is/are True:
1. If the applicant’s instructions indicate an advising bank other than the one, which the Issuing
bank has selected, Issuing bank is under no compulsion to do so.
2. Advising bank should check whether the Credit is workable or not
3. If really needed, excessive details can be included in the credit
4. Banks should discourage inputting non documentary clauses in LC
Options:
A. 1, 2, 3 & 4
B. 1, 3 & 4
C. 1 & 3
D. 2 & 4
709 LC states “Cert of Analysis to be issued by Local Authority of Europe”. Which of the following
parties can issue a cert of Analysis?
1. Applicant
2. Beneficiary
3. Third party
4. Chamber of commerce
5. Negotiating Bank
Options:
A. 2 & 3
B. 3
C. 1, 3, 4 & 5
D. 3, 4 & 5
710 Credit calls for an Inspection cert. Which of the following parties can issue such Inspection cert?
A. Only Beneficiary can issue it
B. Any party other than beneficiary can issue it
C. Any party other than applicant can issue it
D. Any party can issue it
711 What details are to be checked in a document where LC does not specify the issuer of such
document?
A. That the document should be dated after BL date
B. Only internal inconsistencies will be checked
C. That the document is signed or not
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D. That the document is issued by a party other than the Beneficiary
712 Which of the following is not considered as a Clean Transport Document?
A. Highly inflammable material
B. Explosive material
C. Leaky oil drums
D. All the above
713 If a Credit states “Usual risks” are to be covered, then what are the risks that should be covered?
A. Institute Cargo clause (A)
B. Institute Cargo clause (All risks)
C. Institute cargo clause (A) , Institute war clause (cargo), Institute strike clause (cargo)
D. Banks will accept insurance document as presented and will not check for any risks.
714 If an insurance document indicates that the cover is subject to franchise or excess (deductible),
banks will not accept such Insurance document.
A. True
B. False
715 When a Credit stipulates “Insurance against all risks”, which of the following insurance certificates
are acceptable?
1. Insurance document containing “all risks” notation or clause
2. Insurance document containing the heading “all risks”
3. Insurance document containing all risks notation and excluding Institute cargo clause and
Institute war clause
4. Insurance document mentioning ICC(A)
Options:
A. 1 & 2
B. All the above
D. 1, 2 & 3
716 Instalment Latest Shipment Date
1 31.12.2009
2 31.01.2010
3 28.02.2010
4 31.03.2010
1st instalment not shipped. 2nd instalment shipped on 28/01/2010. What are the discrepancies in
2nd instalment?
A. Late shipment
B. Credit ceases to be available
C. Late shipment and Credit ceases to be available
D. LC expired
717 Instalment Latest Shipment Date
1 31.12.2009
2 31.01.2010
3 28.02.2010
4 31.03.2010
1 instalment shipped on 15.01.2010. 2nd instalment shipped on 28/01/2010. What are the
st
discrepancies in 2nd instalment?

A. Late shipment
B. Credit ceases to be available
C. Late shipment and Credit ceases to be available
TF Q BANK Page 42
D. LC expired
718 12. LC issuance date is 1/1/2010.
LC expiry date – for 2 months
Late shipment date- 28/02/2010
Documents presented on 5 March 2010 with on board date as 01 March 2010.What are the
discrepancies?
A. LC ceases to be available
B. LC expired
C. Late shipment
D. LC expired and late shipment
719 LC states “One full set of NN docs should be couriered /faxed to applicant as soon as possible after
shipment”. Shipment date is 25 Feb 2009.
Which of the following beneficiary certificates are discrepant?
A. Beneficiary certificate dated 26 Feb 2009
B. Beneficiary certificate dated 28 Feb 2009
C. Beneficiary certificate dated 18 March 2009
720 Shipping documents include:
A. All documents except insurance
B. All documents including draft excluding transport document
C. All documents
D. All documents except draft
721 Stale documents means:
A. Documents presented after 21 days of shipment date
B. Documents presented before 21 days of shipment date
C. Documents presented after 21 days of shipment date but before expiry date
D. Documents presented after expiry date
722 If LC states Third party documents are acceptable, then which of the documents can be issued by a
party other than Beneficiary?
A. Draft and Invoice
B. All documents except draft and invoice
C. All documents except draft and invoice and transport document
D. All documents except draft and invoice and cert of Analysis
723 Exporting country include:
1. country of origin of goods
2. country of beneficiary
3. country of applicant
4. place of receipt and port of loading
Options:
A. All the above
C. 1, 2 & 4
D. 2 & 4
724 LC asks for a document to be issued and countersigned by applicant. But beneficiary fails to present the
document. Then:
A. Beneficiary bears the risk of not submitting the document
B. Bill becomes discrepant but issuing bank has to pay.
TF Q BANK Page 43
C. Bill becomes discrepant. However Applicant has to pay as the document has to be presented by
himself
725 A confirming bank is irrevocably bound by an amendment:

A. at the time of issuance of amendment by issuing bank
B. at the time of advice of credit to beneficiary
C. at the time of adding confirmation to credit
726 Payment made by Issuing bank to beneficiary if complying docs are presented and of terms and
conditions are fulfilled is:
A. with recourse
B. without recourse
C. with limited recourse
D. with unlimited recourse
727 Which of the following is false?
A. The Issuing bank is obliged to reimburse nominated/confirming bank, if such bank acted in
accordance with the provisions of UCP and have effected payment to beneficiary
B. The applicant normally wishes to delay payment until the latest possible time whereas the
beneficiary wishes to receive payment as quickly as possible
C. Credit means any arrangement, however named or described, that is irrevocable and thereby
constitutes a definite undertaking of the Issuing bank to honor a complying presentation
728 Banks deal with documents and not with ---------------to which the documents may relate:
A. Goods
B. Service
C. Performance
D. All the above
729 The undertaking of a bank under a documentary credit is ------------- of the relationship between
applicant and beneficiary:
A. Independent
B. Dependent
C. Substantial
D. Irrelevant
730 A Credit is --------------- even if there is no indication to that effect.
A. Irrevocable
B. Revocable
C. Either A or B
D. Neither A nor B
731 The ----------- has an overriding duty to give Issuing bank clear and precise instructions to issue or
amend a Credit, because it is the -------------who is aware of what has been agreed with beneficiary:
A. Issuing bank
B. Beneficiary
C. Applicant
D. Confirming bank
732 Issuing bank means the bank that issues the credit at the request of:
A. Applicant
B. Beneficiary
TF Q BANK Page 44
C. Applicant or on its own behalf
D. Beneficiary or on its own behalf
733 A---------- assumes no liability or responsibility, should the instructions it transmits to another bank,
not be carried out, even if it has taken the initiative in the choice of that bank.
A. Issuing bank
B. Advising bank
C. A or B
734 If a Credit states that charges are for the account of beneficiary and charges cannot be collected or
deducted from proceeds, the ---------- remains liable for payment of charges:
A. Issuing bank
B. Applicant
C. Beneficiary
D. Nominated bank
735 The ------------- shall be bound by and liable to indemnify a bank against all obligations and
responsibilities imposed by foreign laws and usages.
A. Issuing bank
B. Applicant
C. Beneficiary
D. Nominated bank
736 Nominated bank examines the documents, finds the documents to be in order and forwards to
confirming bank to the address specified in the Credit. Docs got lost in transit. Then:
A. Nominated bank is responsible and has to pay beneficiary
B. Since the credit is confirmed, confirming bank to reimburse nominated bank
C. The issuing bank should reimburse confirming bank
D. All the above
737 In an unconfirmed Letter of Credit, the nominated bank scrutinizes the documents, finds docs in
order and pays the beneficiary. Documents are then forwarded to Issuing bank. In the absence of
specific instructions in credit, the nominated bank uses its own delivery service and docs are lost in
transit. Which of the following is correct?
1. The nominated bank has to get funds back from beneficiary
2. The issuing bank has to reimburse nominated bank
3. The issuing bank need not reimburse nominated bank, since the nominated bank has used its
own delivery service
4. The issuing bank can ask copies of documents from Nominated bank
Options:
A. 2
B. 2, 4
C. 3, 4
D. 1, 4
738 By advising the credit or amendment, the advising bank signifies that it has:
A. Satisfied itself as to the apparent authenticity of credit or amendment
B. The advice accurately reflects the terms and conditions of the credit or amendment
C. Both A and B
D. Neither A nor B
739 If a bank is requested to advice a credit, but elects not to do so:
A. It must inform Issuing bank without delay
B. It must inform Issuing bank and beneficiary without delay
TF Q BANK Page 45
C. It must inform Issuing bank within 5 banking days
D. It must inform Issuing bank and beneficiary within 5 banking days
740 If the Advising bank cannot satisfy itself as to the apparent authenticity of the credit, but elects
nonetheless to advice the credit:
B. It must inform Issuing bank without delay and beneficiary while advising the credit
741 Which of the following is false?
A. A Credit available with a nominated bank is also available with issuing bank
B. If a Credit does not stipulate whether available by sight/acceptance/DP/Negotiation, it is not
deemed to be a workable Credit
C. A Credit must not be issued available by a draft drawn on applicant
D. An issuing bank is revocably bound to honour as of the time it issues the credit
742 If a Confirming bank chooses to advise an amendment without adding confirmation, it must:
A. Inform issuing bank without delay
B. Inform issuing bank within 3 banking days
C. Inform issuing bank without delay and beneficiary while advising the amendment
D. Inform both issuing bank and beneficiary within 3 banking days
743 ------------ means a bank that pays, incurs a deferred payment undertaking, accepts drafts, or
negotiates under a Credit and presents a Reimbursement claim to the Reimbursement bank:
A. Issuing bank
B. Confirming bank
C. Negotiating bank
D. Claiming bank
744 An issuing bank is irrevocably bound by an amendment as of the time:
A. It Advices the amendment
B. It Issues the amendment
C. The amendment is accepted by beneficiary
D. The amendment is accepted by beneficiary and confirming bank, if any
745 LC available by payment, states documents to be presented within 14 days from the date of
shipment. The goods were shipped on 10th March 2009 which was within the Latest Date for
Shipment. The LC expires on 23rd March 2009, then the documents must be presented latest by:
A. 10th March 2009
B. 23rd March 2009
C. 24th March 2009
D. 22nd March 2009
746 LC calls for presentation of copy documents (but for B/L) to the applicant not later than 5 days after
shipment. The shipment happened on 10th March 2009, then which of the following dates are
acceptable:
1. 07th March 2009
2. 15th March 2009
3. 09th March 2009
4. 16th March 2009
Options:
A. 2 & 4 only
B. All of the above
C. 1,2 & 3 only
TF Q BANK Page 46
D. 4 only
747 LC requires presentation of an Inspection Certificate by ABC Ltd. The shipment happened on 10th
March 2009, the certificate was dated 08th March 2009 and was signed and dated on 13th March
2009. The goods description which were inspected evidenced alteration and the same was
authenticated by XYZ Ltd., then:
1. The document should by title or content evidence Inspection took place before 10th March
2009
2. The alteration authenticated by XYZ Ltd is acceptable
3. Alteration by XYZ Ltd is acceptable provided the authentication evidence the capacity of XYZ Ltd
4. The date of the document is 08th March 2009
Options:
A. 1,2 & 4 only
B. 3 only
C. 1 & 3 only
D. 1 & 2only
748 LC calls for presentation of draft in one copy, the presentation of which of the following would
suffice the LC requirement?
1. Photocopy of an “Original” stamped Draft.
2. Photocopying the draft onto Beneficiary’s Letter head with signature
3. Copy of the draft with a Hand marking that it is “Original” & signature
4. Draft with marking “certified true copy” with signature
Options:
A. All of the above
B. 2 & 3 only
C. 2,3 & 4 only
D. 1 & 4 only
749 LC calls for invoice to be “Stamped & Signed”, the same is satisfied by:
1. Name of the party – typed
2. Name of the party handwritten with signature
3. Name of the party stamped with signature
4. Name of the party perforated with signature
Options:
2,3 & 4 only
2 & 3 only
1 & 4 only
2 & 4 only
750 LC calls for presentation of Invoice, Packing List, Bill of Lading and Insurance Certificate. The LC
number should be stated on Invoice, Packing List and Bill of Lading. The LC number was correctly
stated on Invoice and Packing List, the same was misquoted on Bill of Lading and Insurance, then
which of the following will constitute for internal inconsistencies:
A. LC number internally inconsistent between Invoice, Packing List and Bill of Lading
B. LC number internally inconsistent between Invoice, Packing List and Insurance Certificate
C. Both A & B
751 Bank I being LC issuing bank received a set of documents from Bank P presenting bank, the
documents were discrepant, the issuing bank:
1. may advise all discrepancies orally and then via SWIFT within 75banking days
2. may advise 2 discrepancies orally and balance 3 discrepancies via SWIFT within 5 banking days
TF Q BANK Page 47
3. should advise all discrepancies orally only within 5 banking days
4. should advise all discrepancies via Mail only within 5 banking days
Which of the above are true?
A. All of the above
B. 1 only
C. 2 only
D. 3 & 4 only
752 A refusal advice from the Issuing Bank:
1. Mentions that the documents are rejected
2. Mentions all the discrepancies
3. Has been sent within 5 working days from the date of receipt of documents
Which of the following options will constitute a valid discrepancy advice?
A. Discrepancy advice mentioning all of the above
B. Discrepancy advice mentioning 1 only
C. Discrepancy advice mentioning 2 and 3 only
753 Which of the following is not inclusive under the definition “Exporting Country”?
A. Country of origin of goods
B. Country of receipt of goods by the carrier
C. Country where the beneficiary is registered.
D. Country where the goods are shipped or dispatched
754 The Version applicable to E-UCP will be:
Indicated on the Credit
1. The Version in effect on the date the Credit is issued(if the credit does not state the version)
2. The Version in effect on the date the amendment which is accepted by beneficiary (if the credit
or amendment does not state the version)
3. The Version in effect on the date of the acceptance of amendment by the beneficiary(if the
credit or amendment does not state the version)
Options:
A. 1,2 & 4 only
B. 1,2 & 3 only
C. 1 & 2 only
D. 2 & 4 only
755 A credit was issued subject to E-UCP to the tune of Rs. 100000.00. The credit permits only paper
presentation of following documents:
 Manually signed Invoice
 Indemnity issued in favour of the applicant by the beneficiary’s bankers.
The Beneficiary draws to the tune of Rs. 50000.00 in the form of paper presentation of documents,
the next presentation to the tune of Rs. 50000.00 was in the form of electronic record then:
A. UCP applies for the drawing in Paper Form & E-UCP applies for the drawing in Electronic form
756 Which of the following are untrue with respect to Notice of Completeness?
A. Must be in Electronic Form
B. Must identify the eUCP Credit to which it relates
C. Signifies when the presentation is complete
D. A, B & C above
TF Q BANK Page 48
757 If shipment samples are to be sent within 2 days of shipment and the shipment is effected on 10th
March 2009, then which of the following combinations are acceptable?
Options:
A. all of the above
B. 2,3 & 4 only
C. 3 & 4 only
D. 2 & 4 only
758 The credit states that the shipment date is around 8th March, which of the following Bill of lading is
acceptable?
A. BL issued on 16th March with an on board date of 14th March.
B. Preprinted On board BL with an Issue date of 7th March and an onboard notation as 14th March.
C. BL with an onboard date as 12th March.
D. BL with an onboard date as 2nd March.
759 The LC expires on 30th April 2009 Saturday, and the latest shipment date mentioned in the credit is
5 days after 4th of April 2009, which of the following presentation is acceptable, when there is no
presentation period mentioned in the Credit? (Assumption: No banking holidays other than
Saturday and Sunday in April 2009)
A. Documents presented on 22nd April, with on board date as 10th April.
B. Documents presented on 2nd May as 30th and 1st is Saturday and Sunday with on board date 8th
April.
C. Documents presented on 25th April, with on board date as 2nd April.
D. Documents presented on 29th April, with on board date as 7th April.
A. In a pre-printed Shipped on-board Bill of lading, the issuance date will be deemed to be the
date of shipment.
B. Where a separate on-board notation with date is present in a pre-printed shipped on board bill
of lading, the date of on-board notation will be deemed to be the date of shipment.
C. Where a separate on-board notation is present in a pre-printed shipped on-board bill of lading,
then necessarily the on-board notation should be dated.
D. In a pre-printed received for shipment bill of lading, an on-board notation with date is a must.
761 The Latest shipment date mentioned in the credit is the end of April and the tenor is 30 days after
1. 21st of May
2. 19th of May
3. 20th of May
4. 31st of May
Options:
A. 1 and 2 only
B. 2 and 4 only
C. 1 and 3 only
D. 1 only
A. An Invoice in an Original letterhead.
B. Photocopy of a manually signed invoice.
TF Q BANK Page 49
C. Carbon copy of an invoice with a separate marking stating it is Original.
763 In article 20 of UCP, transshipment is defined as:
A. Unloading of goods from one vessel to another vessel.
B. Unloading of goods from one mode of conveyance to another mode of conveyance.
C. Unloading of goods from one vessel & reloading into another vessel during the carriage
between the Port of Loading and the Port of Discharge stated in the credit.
764 L/C calls for Courier receipt evidencing dispatch of copy documents not later than 2 days after
shipment date i.e. 01/01/2009. Then the courier receipt evidencing which of the following dates is
acceptable?
1. 02nd January 2009
2. 04th January 2009
3. 31st December 2008
4. 01st January 2009
Options:
A. 1 only
B. 1 and 3 only
C. 1, 3 and 4 only
D. 2 and 3 only
765 Unless authorized in the credit, an Invoice evidencing which of the following are not acceptable?
1. Deduction of advance payment charges of $ 5000
2. Bank charges of $ 1000
3. Samples worth $ 150
4. Incoterms – CIF Singapore
Options:
A. 1 and 3 only
B. 1, 2 and 3 only
C. 2 and 3 only
D. 1 and 4 only
766 Which of the following are NOT true with respect to Drafts?
A. Draft need to be dated.
B. Draft need to evidence the drawee.
C. Draft need to evidence the tenor.
D. Draft need to be drawn on the payee.
767 The LC calls for Insurance Policy then, which of the following can be submitted in lieu of the same?
A. Insurance Certificate
B. Declaration under Open Cover
C. Both A & B
768 Which of the following are NOT true with respect to Airway bill?
1. It should be marked Original for consignee.
2. It can be signed by the Agent.
3. It should evidence “receipt of goods for carriage”.
4. Full set need to be presented when Original airway bill is called for under the credit.
Options:
A. 1 and 3 only
B. 1 and 2 only
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C. 1 and 4 only
D. 2 and 3 only
769 Which of the following will satisfy Article 20 of UCP?
1. Carrier identified as ‘XYZ Ltd’ on top of the Bill of Lading and signed by ‘XYZ Ltd’ without
identifying the capacity near the signature.
2. Carrier identified as ‘XYZ Ltd’ on top of the Bill of Lading and signed by ‘XYZ Pvt Ltd’ identifying
themselves as ‘Carrier’ near the signature.
3. Carrier identified as ‘XYZ Ltd’ near the signature part and signed by ‘ABC Ltd’ in the capacity ‘As
Agents’.
4. Signed by ‘ABC Ltd’ ‘As Agents to Carrier XYZ Pvt Ltd’.
Options:
A. 1 and 4 only
B. 2 and 4 only
C. 2, 3 and 4 only
D. 4 only
770 LC requires fax transmission report detailing sample shipment to applicant within 2 days of
shipment. The shipment date is 10th December 2009, the fax transmission report can be dated:
1. 08th December 2009
Options:
A. 3 only
B. 1 and 3 only
C. 1 only
D. 1 and 4 only
771 Under a Credit which prohibits transshipment, banks will accept a combined transport ocean bill of
lading which evidences that transshipment will take place:
A. If the entire voyage is covered by one and the same combined transport ocean bill of lading.
B. Only if the entire voyage is covered by one and the same multimodal transport document and
indicates that the relevant cargo is shipped in Container(s), Trailer(s) and/or Lash barge(s).
D. Only if the entire voyage is covered by one and the same combined transport ocean bill of
lading and has a clause ‘The Carrier reserves the right to transship’.
772 When an MT700 states ‘Mail confirmation to follow’, an advising bank should:
A. Advise the credit stating that the credit will be operational after the mail confirmation.
B. Give a pre-notice to the beneficiary without responsibility as information only and seek
clarification from issuing bank.
C. Advise the credit.
D. Advise the credit once the mail confirmation is received.
773 In a Road Transport document, Carrier can be named as:
1. Actual Carrier
4. Issuing Carrier
Options:
A. 1 and 4 only
TF Q BANK Page 51
C. 2, 3 and 4 only
D. All of the above
774 When a Credit calls for a ‘Post receipt’ or ‘Certificate of Posting’, banks will accept:
A. Post receipt or Certificate of Posting only.
B. Postal certificate.
C. Acknowledgement of Posting.
D. However named as long as the provisions of Article 25 are met.
775 LC was issued for $ 25,000.00 and disallows Partial shipment, then which of the following draw-
downs are acceptable:
A. $ 23,750.00
B. $ 22,500.00
C. $ 26,000.00
D. $ 22,750.00
776 Under a confirmed credit available by payment, beneficiary submits documents on 31st May, and
then corrected documents on 3rd June Thursday, to the non-confirming nominated bank. Latest by
when can he expect payment or a refusal advice? (Saturdays and Sundays are the only non-banking
days)
A. 10 June
B. 4 June
C. 7 June
D. 9 June
777 Negotiation is defined as:
credit.
Options:
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 2 and 4 only
778 A LC available by payment, states documents are to be presented within 14 days from the date of
shipment. The goods were shipped on 10th March 2009, which was within the latest date for
shipment. The LC expires on 17rd March 2009, then the documents must be presented latest by:
A. 10th March 2009
B. 17rd March 2009
C. 24th March 2009
D. 26th March 2009
779 A LC calls for presentation of copy documents (but for B/L) to the applicant not later than 5 days
after shipment. The shipment happened on 10th March 2009, then which of the following dates are
acceptable?
1. 07th March 2009
2. 15th March 2009
3. 09th March 2009
4. 16th March 2009
TF Q BANK Page 52
Options:
A. 2 & 4 only
B. All of the above
C. 1, 2 & 3 only
D. 2 only
780 A LC calls for presentation of draft in 1 copy, the presentation of which of the following would not
suffice the LC requirement but for?
1. Photocopy of an “Original” stamped Draft.
2. Photocopying the draft onto Beneficiary’s letter head with signature.
3. Copy of the draft with a Hand marking that it is “Original” and signature.
4. Draft with marking “certified true copy” with signature.
Options:
A. All of the above
B. 2 & 3 only
C. 2, 3 & 4 only
D. 1 & 4 only
781 A LC requires presentation of Copy of Insurance Certificate, then which of the following documents
are acceptable except?
1. Original Insurance document duly signed and dated.
2. Insurance document appearing to be produced on fax machine.
3. Insurance document with stamp and seal that it is “certified true copy”.
4. Photocopy of Original insurance document without any hand marking.
Options:
A. All of the above
C. 1, 3 & 4 only
D. 1 only
782 A LC calls for presentation of Invoice, Packing list, Bill of Lading and Insurance certificate. The LC
number should be stated on Invoice, Packing list and Bill of Lading. The LC number was correctly
stated on the Invoice and Packing list, the same was misquoted in the Bill of Lading and Insurance
certificate, then which of the following will constitute for internal inconsistencies:
A. LC number internally inconsistent between Invoice, packing list and bill of lading.
B. LC number internally inconsistent between Invoice, packing list and insurance certificate.
C. Both A & B
783 A refusal advice from the Issuing bank:
1. Mentions that the documents are rejected.
2. Mentions all discrepancies.
3. Has been sent within 5 working days from the date of receipt of documents.
4. Mentions disposal of documents
Which of the following options constitute a valid discrepancy advice?
A. Discrepancy advice satisfying all of the above.
B. Discrepancy advice satisfying 1 only.
C. Discrepancy advice satisfying 2 and 3 only.
784 Bank I being the LC issuing bank, received a set of documents from Bank P, the presenting bank.
The documents were discrepant, then the Issuing bank:
1. May advise all discrepancies orally and then via Swift within 5 banking days.
TF Q BANK Page 53
2. May advise 2 discrepancies orally and balance 3 discrepancies via Swift within 5 banking days.
3. Should advise all discrepancies orally only, within 5 banking days.
4. Should advise all discrepancies via Mail only within 5 banking days.
Options:
A. All of the above
B. 1 only
C. 1 and 2 only
D. 3 & 4 only
785 Once the Issuing bank finds that the documents are discrepant, then:
1. It may seek waiver of discrepancies and simultaneously send out a refusal telex to the presenter.
2. It should seek waiver of discrepancies and await the acceptance/rejection of the applicant before
sending out the discrepancy telex.
3. In case a waiver is sought and the applicant accepts the same, then it can never refuse
documents to presenter
4. In case a waiver is sought and the applicant refuses the same, then it can never take up
documents.
Options:
A. 3 & 4 only
B. 1 only
C. 2 only
D. 1, 3 & 4 only
786 LC issued on 01Jan10, expiring on 31Mar10 available with Bank N in beneficiry country. The LC calls
for notice of receipt of goods issued by Mr. X in beneficiary’s country and Original transport
document to be sent to applicant outside the presentation and a evidence to this effect (Original
courier receipt) to be presented along with notice issued by Mr. X.
The shipment was completed and Mr. X issued the notice on 10Jan10. Beneficiry presented the
documents on 20Mar10 to Issuing bank in the importing country. Which of the following are
correct?
1. Beneficiary should have presented the document within 21 days from 10Jan10 to Bank N
2. Beneficiary should have presented the document within 21 days from 10Jan10 to Issuing bank
3. Beneficiary can present the document after 21 days from 10Jan10 to Bank N within LC validity
4. Beneficiary can present the document after 21 days from 10Jan10 to Issuing bank within LC
validity
Options:
A. 1 & 2
B. 3 & 4
C. 4 only
787 LC calls for a certificate issued by beneficiary mentioning that one set of negotiable documents
have been sent to applicant within 10 days of shipment. Shipment date is 28Feb10. Which of the
following statements are correct:
1. Certificate should be dated between 18Feb10 and 10Mar10
2. Certificate need not be dated
3. Certificate should be dated after 28Feb10
4. Certificate may be dated 28Feb10
Options:
A. 1, 2 and 3
B. 1 and 4
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C. 1 and 2
D. 3 and 4
788 'Stale documents acceptable' - Which are of the following LC types will have applicability of this
clause:
1. Commercial merchandise LC
2. Commercial Service LC
3. Advance Payment Standby
4. Direct-pay Standby
Options:
A. 2 only
B. 1 and 2
C. 3 and 4
D. 1 Only
789 Which of the following statements are true?
1. Draft must always evidence credit number
2. Draft must show details such as import license no and P.O number where there is a specific
requirement that all documents should be so marked
3. Draft must show details such as import license no and P.O number where there is a specific
requirement that shipping documents should be so marked
4. If the draft states a maturity date by using a specific date, the date must have been calculated in
accordance with the requirements of the credit
Options:
A. 1, 2 and 4
B. 2 and 4
C. 4 and 1
D. 3 and 4
790 An issuing bank received documents from presenter on 26FEB10. It checked the documents and
found it to be non-complaint. It approached applicant on 02Mar10 for approval of discrepancy
while informing the list of discrepancies through telephone to the presenter. On 05Mar10,
presenter follows-up with the IB for the status of the document, for which IB confirmed to refuse
the documents. On 08Mar10, applicant confirmed the documents are not acceptable and rejects
the same. On09Mar10, IB approaches presenter for disposal instruction.
Has Issuing bank correctly refused the documents?
A. Yes
B. No
791 A document is treated as original if:
1. It appears to be hand written by the issuer
2. It appears to be on original stationery of the issuer
3. It states to be original
Options:
A. None of the above
B. 1 and 2
C. 2 and 3
D. Any one of the above
792 A document is not a original if it:
1. Appears to be produced on a telefax machine
2. Appears to be photocopy of another document
3. Document mentions that it is a true copy
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Options:
A. None of the above
B. 1 and 2
C. 2 and 3
D. Any one of the above
793 A credit could be made available with Issuing Bank in the following modes EXCEPT:
1. Sight
2. Usance
3. Deferred Payment
4. Negotiation
Options:
A. 1 & 2 only
B. 3 only
C. 4 only
D. 1 & 4 only
794 In a revocable credit available by deferred payment with Nominated Bank, the Issuing bank upon
issuance of notice of amendment or cancellation is still bound to reimburse if:
A. Documents are presented at the counters of Nominated bank within presentation period
B. Nominated bank has scrutinized documents and advised discrepancies to the presenter.
C. Nominated bank has scrutinized documents and certified as compliant with credit terms.
D. Nominated bank has rejected documents
795 Which of the following statements are TRUE:
1. Carrier need not be identified in a Charter Party Bill of Lading
2. Carrier need not be identified in a Multimodal Transport document
3. Carrier need to be identified in a Ocean Bill of Lading
4. Carrier need not be identified in a Non-Negotiable Sea-way Bill
Options:
A. 1 and 3 Only
B. 1, 2 and 3 Only
C. 1 and 4 Only
D. 1 Only
796 Even when credit prohibits, which of the following transport document evidencing transshipment
will or may take place is acceptable:
1. Ocean Marine Bill of Lading – if the goods have been shipped in a container, trailer or LASH barge as
evidenced by the bill of lading.
2. Air Waybill
3. Multimodal Transport document
4. Rail transport document
Options:
A. 2 & 4 only
B. 1 & 3 only
C. 2, 3 and 4
797 In a credit which permits Cumulative Reinstatement by Time, the value of credit is $ 90000.00 and
issued on Jan 1, 2009 for a period of six months. If one month shipment is up to $ 15,000.00 and
the shipper effects full shipment during Jan, Mar and May. The final shipment for the month of
June could be to the tune of:
A. $ 15,000.00
TF Q BANK Page 56
B. $ 45,000.00
C. $ 30,000.00
D. $ 60,000.00
798 A documentary credit for USD 120,000.00 calls for shipment of fertilizer in February, March, April
and May. Each shipment is to be for about 500 tones. Shipment was effected as follows:
1. 450 tones sent 24 February for value USD 27,000.00.
4. 550 tones sent 04 June for value USD 33,000.00.
Which of the above shipments will be honoured on presentation?
A. 1 only.
B. 1 and 3 only.
C. 2 and 4 only.
D. 1, 2 and 3 only.
799 A reimbursing bank has received a valid claim under its reimbursement undertaking and is
instructed by the issuing bank NOT to honour the claim. In accordance with the URR525, the
reimbursing bank should:
A. request the claiming bank to cancel the claim.
B. instruct the claiming bank to contact the beneficiary.
C. honour the claim and debit the issuing bank's account.
D. dishonour the claim as per the issuing bank's instruction.
800 An importer requires goods of a stipulated quality while the exporter requires certainty of
payment.
Which of the following would BEST meet all requirements?
A. Confirmed standby credit payable on demand calling for beneficiary's quality certificate.
B. Confirmed documentary credit payable at sight calling for beneficiary's quality certificate.
C. Confirmed documentary credit available by acceptance with drafts drawn on confirming
bank calling for third party quality certificate.
D. Unconfirmed documentary credit payable at sight with drafts on issuing bank calling for
third party quality certificate.
801 A German bank has added its confirmation to a documentary credit issued by a Turkish bank.
Which of the following risks is NOT borne by the confirming bank?
A. Fraud by the beneficiary.
B. Insolvency of the issuing bank.
C. Refusal of the issuing bank to pay against complying documents.
D. Government restrictions on funds transfer from the issuing bank.
801 Which of the following can be combined under a credit available with and requiring a draft drawn
on an issuing bank?
1. Payment.
2. Deferred payment.
3. Acceptance.
4. Negotiation.
Options:
A. 1 and 2 only.
B. 1 and 3 only.
C. 2 and 3 only.
D. 3 and 4 only.
803 In accordance with UCP 600, which of the following terms may NOT be altered on a transferred
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documentary credit? The:
A. amount
B. required documents.
C. period for presentation.
D. amount of insurance cover.
804 A documentary credit which allows partial shipments has the following shipment schedule:
1,000 units shipped between 01 June XXXX and 30 June XXXX
2,000 units shipped between 01 July XXXX and 31 July XXXX
2,000 units shipped between 01 August XXXX and 31 August XXXX
3,000 units shipped between 01 September XXXX and 30 September XXXX
The beneficiary shipped the goods and presented documents as follows:
1. 1,000 units shipped on 15 June XXXX documents presented on 30 June XXXX
2. 3,000 units shipped on 15 July XXXX and presented on 28 July XXXX
3. 2,000 units shipped on 31 July XXXX and presented on 15 August XXXX
4. 3,000 units shipped on 15 September XXXX and presented on 30 September XXXX
Which of the above sets of documents are complying?
A. 1 only.
B. 3 only.
C. 1 and 4 only.
D. 1, 2 and 4 only.
805 In accordance with UCP 600, which of the following changes can a first beneficiary request a
transferring bank to make under a transferable documentary credit?
A. Extend the expiry date.
B. Decrease the unit price.
C. Decrease insurance cover.
D. Extend the period for shipment.
806 A documentary credit calls for a draft at 95 days from bill of lading date drawn on the confirming
bank. The documentary credit is available by:
A. refinance.
B. acceptance.
C. sight payment.
D. deferred payment.
807 A documentary credit pre-advice is issued on 1 March for USD 510,000.00 with the following terms
and conditions:
- Part shipment allowed.
- Latest shipment date 30 April.
- Expiry date 15 May.
On 2 March the applicant requests an amendment prohibiting part shipment and extending the
expiry date to 30 May. In accordance with UCP 600 what MUST the issuing bank do?
A. Clarify with the applicant the period for presentation.
B. Issue the documentary credit as originally instructed.
C. Issue the documentary credit incorporating all the amendments.
D. Issue the documentary credit incorporating only the extended expiry date.
808 On 03 January XXXX an irrevocable documentary credit for USD 500,000.00 is confirmed. On 17
January XXXX the confirming bank receives an amendment cancelling the documentary credit
which it advises to the beneficiary. As at 18 January XXXX, what is the liability of both banks?
A. Issuing and confirming bank – USD 0.00.
B. Issuing and confirming bank USD 500,000.00.
TF Q BANK Page 58
C. Issuing bank – USD 0.00 Confirming bank – USD 500,000.00.
D. Issuing bank – USD 500,000.00 Confirming bank – USD 0.00
809 Which of the following statements is correct when an assignment of proceeds has been effected
under a documentary credit issued in accordance with UCP 600?
A. The assignee must present complying documents to receive payment.
B. The assignee will receive payment of the proceeds directly from the applicant.
C. The value of the documentary credit is reduced by the amount of the assignment.
D. The beneficiary has assigned its rights to the stated amount of proceeds to the assignee.
810 A documentary credit is issued for an amount of GBP 60,000.00 and calls for drafts to be drawn at
30 days from bill of lading date. Documents have been presented with a bill of lading dated 09
November XXXX. Which of the following tenors on the draft will NOT be acceptable?
A. 09 December XXXX.
B. 30 days from bill of lading date.
C. 30 days after 09 November XXXX.
D. 30 days date, draft dated 09 November XXXX
811 Which of the following documents MUST be signed?
A. Packing list.
B. Certificate of origin.
C. Commercial invoice.
D. Weight specification.
812 A credit requires an 'invoice' without further definition. Which of the following MUST be
considered a discrepancy?
A. Presentation of a document identified as a tax invoice.
B. An invoice which is not signed.
C. An invoice made out in a different currency to the credit.
D. An invoice issued for an amount in excess of that permitted by the credit.
813 A documentary credit advised to a beneficiary payable at sight calls for documents to include an
invoice made out in the name of the applicant. Documents presented to the negotiating bank by
the beneficiary include a customs invoice but no commercial invoice. All other terms and conditions
have been met. What action should the negotiating bank take?
A. Reject the documents as non-complying.
B. Refer to the issuing bank for authority to pay.
C. Return the documents for amendment by the beneficiary.
D. Pay the documents as fully complying with the terms of the credit.
814 A documentary credit is issued for an amount of approximately GBP 40,000.00 payable with drafts
drawn at 30 days from date of shipment. Documents are presented on 22 September XXXX with
bills of lading dated 01 September xxxx and for value GBP 38,000.00. Which of the following drafts
would be accepted?
1. 30 days from 01 September XXXX for approximately GBP 40,000.00.
2. 30 days from date of shipment – value GBP 38,000.00.
3. Due 01 October XXXX – value GBP 38,000.00.
4. 30 days from bill of lading date 01 September XXXX – value GBP 38,000.00.
Options:
A. 1 and 2 only.
B. 1 and 3 only.
C. 2 and 4 only.
D. 3 and 4 only.
815 Is the following refusal notice acceptable for a DC subject to UCP 600?
TF Q BANK Page 59
A. YES
B. NO
"We refuse the documents and have found the following three discrepancies in the presented
documents:
1. The port of discharge in the B/L is not the same as that stated in the DC.
2. Presentation after expiry.
3. Corrections in the certificate of origin are not authenticated by the issuer."
816 An applicant informed the issuing bank that the goods were rubbish and asked the issuing bank to
freeze payment under a DC subject to UCP 600 due to trade frauds although the documents
presented were all compliant. Which of the following is appropriate action from Issuing bank?
A. Should the issuing bank follow the instructions from the applicant
B. Instruct presenter to approach applicant and sort out the issue
C. Make payment / provide acceptance as per terms and conditions of the credit
D. Make payment / provide acceptance as per terms and conditions of the credit and advise
applicant that banks deal with document and not with goods.
817 A DC subject to UCP 600 issued by Bank I was confirmed by Bank C expiring on 1 September 2010.
There was no restriction on the presentation. The beneficiary presented the documents to Bank I
on 29 August 2010. Which of the following is TRUE?
1. Beneficiary should have presented documents to Bank C.
2. Beneficiary may request Bank I to confirm status of documents before 31Aug2010.
3. Bank I should confirm the status of documents before expiry.
4. Bank I has up to 5 banking days to confirm status of documents.
Options:
A. 1, 2 and 3
B. 2 and 4
C. 4 Only
D. 2 and 3
818 Under which condition that a confirmed letter of credit subject to UCP 600 may become
unconfirmed without the consent of the beneficiary?
A. At the sole decision of Issuing bank
B. Only when applicant, Issuing bank, Confirming bank and beneficiary agree to the same
C. Only at the consent of confirming bank
819 One set of Drafts drawn on the drawee bank presented under a documentary credit subject to UCP
600 expiring on 30 August 2007 was accepted on 30 July 2007 for 30 days deferred payment but
was unpaid on maturity 30 August 2007, then:
A. Beneficiary can draw draft on applicant and present the same to the Issuing bank
B. Beneficiary can draw drafts on Issuing bank and should present the same to drawee bank
C. Beneficiary can draw drafts on Issuing bank and should present the same to Issuing bank
D. If beneficiary presents drafts drawn on itself, Issuing bank can reject the same stating LC expired
820 A DC subject to UCP 600 calls for full set of insurance policy but is silent on the number of originals
issued. The presentation contained one original Insurance policy whereas it omitted to mention the
total number of originals issued. Which of the following is acceptable?
A. Issuing bank should make it discrepant as the document omits to mention the number of
originals issued
B. Issuing bank should make it discrepant, as full set is not been presented
C. Docs are clean
D. Beneficiary should have at least three originals
TF Q BANK Page 60
821 An insurance policy indicates that it is expiring on 20Aug10 (for any claim presentation) and the DC
specifies the latest shipment date as 15Aug10. Which of the following dates are acceptable as date
of issue of the Insurance Policy?
1. 09Aug01
2. 10Aug10
3. 20Aug01
4. 15Aug10
Options:
A. 2 and 4
B. 2 only
D. All the above
822 LC called for supply of freshly cut logs from Malaysia to India and prohibited partial shipments. It
specified port of loading "Any Malaysian port" and port of discharge "Any Indian Port'. Goods were
shipped on the same vessel loading at different ports in Malaysia at different time periods under
the same voyage number for the same destination. Different sets of bills of lading and related
documents (certificates of inspection etc) were presented under the same DC. What shall be the
stand of the Issuing Bank.
A. More than one port of loading evidenced - Discrepant
B. More than one set of BL presented - Discrepant
C. More than one set of related documents presented - Discrepant
D. Docs are clean – To honor the documents.
823 In case of a confirmed documentary credit, the confirming bank undertakes to:
A. accept drafts not accepted by stipulated drawee bank
B. pay drafts accepted by the drawee bank and unpaid by drawee bank at maturity
C. accept drafts drawn by the beneficiary on the confirming bank and to pay them on maturity
D. All the above
824 Which of the following is not true?
A. Some documentary credit might show that they are available partly by sight payment and partly
by acceptance
B. A documentary credit available with nominated bank is also available with issuing bank
C. An issuing bank undertakes to reimburse a nominated bank that has honoured, negotiated a non
complying presentation
D. Payment may/may not be immediate in a negotiation type documentary credit.
825 Issuing bank means the bank that issues the credit at the request of:
A. Applicant
B. Beneficiary
C. Applicant or on its own behalf
D. Beneficiary or on its own behalf
826 If a Credit states that charges are for the account of beneficiary and charges cannot be collected or
deducted from proceeds, the ------------- remains liable for payment of charges
A. Issuing bank
B. Applicant
C. Beneficiary
D. Nominated bank
827 If a bank is requested to advice a credit, but elects not to do so,
B. It must inform Issuing bank and beneficiary without delay
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828 Which of the following is true?
A. A credit may be transferred to more than one second beneficiary even if partial shipment is
prohibited
B. Issuing bank cannot be a transferring bank
C. A transferred credit can be transferred at the request of second beneficiary to any subsequent
beneficiary
D. If any second beneficiary rejected the amendment, the transferred credit will remain
unamended in respect of that second beneficiary.
829 A credit for USD 60,000.00 covering shipment of silk gowns, stated that the shipment to be made
on or before 21 July 2009. It did not stipulate the quantity of goods. Shipment has to be effected by
air and the airway bills had to indicate the actual flight number and date. The beneficiary presented
documents totaling USD 56,800.00 for negotiation. The documents included five sets of airway bills,
issued on various dates, with details as follows:
AWB #1 dated 20 July 2009 : Flight VC297 dated 20/7/2009
AWB #2,3,4 dated 21 July 2009 : Flight HL484 dated 21/7/2009
AWB #5 darted 22 July 2009 : Flight XC369 dated 21/7/2009
The documents would be discrepant due to which of the following:
A. Late Shipment
B. Shipment not made in three lots
C. Partial shipment effected
D. No discrepancy – Docs are clean
830 When a Credit stipulates “Insurance against all risks”, which of the following insurance certificates
are acceptable?
1. Insurance document containing “all risks” notation or clause
2. Insurance document containing the heading “all risks”
3. Insurance document containing all risks notation and excluding Institute cargo clause and
Institute war clause
4. Insurance document mentioning ICC(A)
Options:
A. A, B
B. All the above
D. A, B & C
831 . LC issuance date is 1/1/2009. LC expiry date – 2 months. Latest shipment date- 28/02/2009
Documents presented on 5 March 2009 with on board date as 01 March 2009.What are the
discrepancies?
A. LC ceases to be available
B. LC expired
C. Late shipment
D. LC expired and late shipment
832 Stale documents means
A. Documents presented after 21 days of shipment date
B. Documents presented before 21 days of shipment date
C. Documents presented after 21 days of shipment date but before expiry date
D. Documents presented after expiry date
833 LC states “One full set of NN docs should be couriered / faxed to applicant as soon as possible after
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shipment”. Shipment date is 25 Feb 09.
Which of the following beneficiary certificates certifying the above clause are discrepant?
A. Beneficiary cert dated 26 Feb 09
B. Beneficiary cert dated 28 Feb 09
C. Beneficiary cert dated 18 March 09
834 The trade term is CIF, the delivery (transfer of risk) occurs at
A. Port of Discharge
B. Port of Loading
C. Place of Receipt
D. Carrier’s Depot
835 Certificate of Origin must be
A. Issued by the Chamber of commerce / or similar authority
B. Signed & Dated
C. Dated
D. All of the above
TF Q BANK Page 63

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476 LC was issued for Rs. 50000 and the invoice was drawn for Rs. 55000, Rs.

, Rs. 5000 being samples not

499 A documentary credit can be made available with:

1. A reimbursement Undertaking can be cancelled without the agreement of claiming bank.

The documents would be discrepant due to which of the following:

Shipped on Board notation is as under:

Will you consider the above as a case of transshipment?

discrepancies in 2nd instalment?

725 A confirming bank is irrevocably bound by an amendment:

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