1.

At sight Bill of Exchange means:

A. Drawee has no right to refuse to pay
B. Payable on presentation
C. Drawee should accept to pay immediately
D. Payable at 3 days after acceptance
3. Collections should not contain bills of exchange payable at a future date with instructions
that commercial documents are to be delivered against payment. If collections contain such a
bill with such instructions, documents will be released to the drawee upon… and the
presenting bank is not responsible for any consequences arising out of any delay of payment.
(URC522 Art. 7 c)
A. The collecting bank’s undertaking to pay
B. The drawee’s acceptance
C. The drawee’s payment
D. A guarantee to pay
4. Liability of the confirming bank is:
A. To make payment to beneficiary if goods are in accordance with the terms of the sales
contract
B. To honour, it the credit is available by sight payment with another nominated bank and
that nominated bank does not pay
C. To satisfy itself as to apparent authenticity of the credit
D. To authenticate the documents presented by beneficiary of LC
2. … is a method of trade finance whereby the … bank purchases, on a without-recourse
basis, unconditional ?? debt obligations arising from the provision of goods and/or services
which are due to mature at a future date.
A. Factoring/factoring/conditional
B. Forfaiting/factoring/conditional
C. Forfaiting/factoring/unconditional
D. Forfaiting/forfaiting/unconditional
8. According to Uniform Customs and Practice 600, 2007, complying presentation means:
A. A presentation that is in accordance with the terms and conditions of the credit, UCP
and ISBP
B. Documents under a credit must be in compliance with each other
C. A presentation that is in accordance with contract and the terms and conditions of the
credit
D. Documents under a credit must be in compliance with each other and with the terms
and conditions of LC
7. According to VN Law on assignment instruments 2005, in case of where the amount of
money stated in figure on the bill of exchange BE is different from the amount in word:
A. The amount in word shall be valid for payment
B. The amount in figure shall be valid for payment
C. BE shall be invalid
D. None of the above
6. … supports an obligation to perform other than to pay money, including for the purpose of
covering losses arising from a default of the applicant in completion of the underlying
transactions.
A. A Financial standby
B. An advance payment standby
C. A performance standby
D. A non-payment standby
5. Bank guarantee refers to a type of credit whrerby the guarantor undertakes to act on behalf
of the ….. to fulfill their financial obligations to the …. in the event the obligor fails to fulfill or
insufficiently fulfill their agreed-upon obligations to the onligee.
A. Obligee - obligor
B. Beneficiary - Applicant
C. Obligor - obligee
D. Applicant - obligor
9. What kind of trade finance is the most attractive for an exporter?
A. Documents against acceptance
B. Documents credit at sight
C. Open account is to be secured
D. Pre-shipment remittance
12. Which collection is the least secure to exporter?
A. Clean collection
B. Documents against acceptance
C. Documents against payment
D. Document against promissory note
10. An advantage of the documentary collection to an exporter is that:
A. The bank retains control over the goods until the importer either accepts or pay the bill
drawn on him
B. He can get finance from banks
C. The bank retains control over the goods and docs until the importer either accepts or
pays the bill drawn on him
D. The bank retains control over the documents until the importer either accepts or pays
the bill drawn on him
11. Which statement is CORRECT concerning Forfaiting?
A. Forfaiters face some restrictions concerning the origin of goods
B. Where an export has been agreed for a forfeit finance, if it should be frustrated, the
finance cannot be available if the goods are sold internally
C. Forfaiting improves working capital flow and have low cost
D. Forfaiting gives an importer the flexibility to pay for goods on deferred terms of credit
and at a fixed interest cost
14. According to ISP 98, a standby is an …,...,... and … undertaking when issued and need
not so state.
and
A. unconditional, independent, documentary, binding
B. irrevocable, independent, documentary, binding
 C. irrevocable, unconditional, independent, documentary
D. independent, unconditional, documentary, definite
13. In case of non-acceptance of a D/A collection bill, what should the presenting bank do:
A. Have the documents protested on behalf of the remitting bank immediately
B. Advise the remitting bank of the fact immediately
C. Advise the importer immediately
D. Advise the ultimate buyer immediately
15. Which of the following terms of payment is the most favorable to an importer?
A. Documents against payment
B. Documentary credit
C. Open account
D. Documents against acceptance
16. Which risk that the exporter does NOT face under method "Documents against payment'?
A. Exporter may not to receive the payment on time
B. Importer accepts the usance Bill of Exchange but fails to pay on due date
C. Exporter should ship back the goods if shipment is not accepted
D. All of the above
17. A L/C stipulated "L/C is available with advising bank by payment". Which statement is
right?
A. The advising bank examines documents, the issuing bank makes payment
B. The issuing bank examines docs, the advising bank makes payment
C. The advising bank examines docs and makes payment
D. The advising bank examines docs and the nominated bank makes payment
18. Which statement is false?
A. In factoring, usually 80% of the value of the invoice is considered for advance.
B. Forfaiting is 100% financing only when there is a guarantee about payment of the
importer.
C. One of the services of a factor is advisory service.
D. B&C
19. If an applicant requests that the documentary credit expires at the counters of the
beneficiary's bank with drafts drawn on that bank at 60 days after shipment date, how should
the documentary credit be made available?
A. By mixed payment
B. By sight payment
C. By deferred payment
D. By acceptance
20. According to Vietnam Law on assignment instruments 2005, assignment of Bill of
Exchange can be:
A. The assignment of the entire amount of money stated on the bill of exchange.
B. The assignment of one part of the amount stated on the bill of exchange
C. The assignment of bill of exchange to two persons or more simultaneously.
D. All of the above.