BASIC TRADE FINANCE TRAINING

QUIZ No. 1

1.What are availiability under UCP 600 ? Explain your short reason !
a. Sight, Usance, Deferred, Transferable
b. Sight, Revolving, Advance Payment, Transferable
c. Confirmed, Transferable, Back To Back, Negotiation
d. Sight, Acceptance, Deffered, Negotiation
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2. For which Availiability are draft must be required ?and explain yr short reason !
a. Sight, Acceptance, Deferred
b. Acceptance, Deffered, Confirmed
c. Negotiation, Deferred, Acceptance
d. Acceptance
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3. What do you understand about the scope word negotiation in UCP 600 ?
a. Examination, Valuation
b. Presentation, Examination, Claim Payment
c. Examination, Valuation, Proceed, Reimbursement
d. Valuation, Reimbursement
4. What kind of DC type (UCP 600) which gives most flexibilities of availment to the nominated bank ?
and explain yr short reason !
a. Sight
b. Usance
c. Revolving
d. Negotiation

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5. What t is the liability of the nominating bank in receiving documents under negotiation usance DC
and explain with the short reason
a. Accept the draft
b. Negotiate the draft
c. Discount the draft
d. No Obligation
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6.

If Bank X receive a DC available by payment from non correspondent overseas bank, what the
proper action in receiving documents under this DC ;
a. Make immediate payment
b. Negotiate for sight payment
c. Reject the document
d. collection basis

Explain with the short reason !

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7.

Issuing bank (Urdu Bank, Usbekistan) issue its DC available by negotiation through and confirmed
by HSBC New York. The Original DCs amount is USD1,000,000.- Later, issuing bank amend its
DC to become USD1,100,000.- through the same confirming bank, but without any additional
confirmation clause. This amendment is then accepted by the beneficiary. Documents must be
submitted to confirming bank. As the beneficiary submit the full amount of documents, what is
most proper action that should be done by PT. Bank X ?
a. Reject the document
b. Take up document and send to confirming bank under recourse basis
c. Negotiate the confirm amount
d. Send enquiry to issuing bank
Explain with the short reason !
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8.

A negotiation DC is issued by Citibank Frankfurt and confirmed by Citibank New York. DC is not
indicating any nominated bank and the disposal of the documents. What your action upon receiving
DCs document by the beneficiary in Indonesia ?
Explain with the short reason !
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9.

A DC indicates the following availment : This DC by negotiation 90% of the draft at sight. The
rest of amount will be paid at 180 days after the shipment date reflected on the transport document.
In order to minimize the risk in issuing bank, what is the the type of availment that you will be used
to this DC.
a. Negotiation (Usance)
b. Acceptance (Usance)
c. Deferred payment (Usance)
d. Sight payment (Usance)
Explain with the short reason !
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10. If the availment clause on a DC indicates the following terms : This credit is available by sight
payment after 30 days of delivery relevant document to issuing bank. No Draft is required for
payment. What do you think is necessary to advising bank to do before advising this DC to its
customer :
a. Advise it as sight DC
b. Advise it as acceptance DC
c. Advise it as deffered payment DC
d. Advise it as negotiation DC
Explain with short reason :
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