(10) Which of the following is not true of a letter of credit?

A.it is a document

B.issued by a bank

C.at the request of the exporter

D.the bank agrees to honor a draft drawn on the importer

E.payable in the designated currency

(11) If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as _____.

A.revolving

B.irrevocable

C.revocable

D.unconfirmed

E.unclean

(12) Which of the following is not a condition for drafts to be negotiable?

A.must be in writing, signed by the drawer

B.must contain a promise to pay a certain sum if goods are received

C.must contain an order to pay

D.must be payable on sight or at a specified date

E.must be made out to order or bearer

(13) Which two of the following are regarded as the main aims of the World Trade Organisation (WTO)?

a) To eliminate discrimination in world trade

b) To provide financial assistance to countries with debt

c) To reduce tariff barriers

d) To make 'infant industry' protection illegal

e) To help give preferences to smaller economies

b) and e)

a) and c)

c) and e)

b) and d)

a) and d)

14. The gatt (1994) has a number of sub-agreements including, among others:

15. Which of the following exceptions in the WTO rules does not permit a country to use a tariff or quota that is more restrictive than its bound tariff?

a. Anti-dumping

b. Countervailing duties

c. Safeguards

d. Balance of payments protection

e. Preferential trade agreements

15. Grenada is a member of the WTO and must abide by its laws which has an international legal status. Therefore, the customs authority in Grenada:

A.Should not access the value of goods for the imposition of duties.

B.Should not access the value of goods for the imposition of import duties nor should it apply an ad valuation charge on any specific import activity.

C.Has the power to uplift on declared values of imported goods.

D.Must not allow entry of goods from a country that is not a member of the WTO.

16. INCOTERMS apply in a contract for carriage of goods by sea, if:

One party is from the United Kingdom

Both parties are based in the United States

They are incorporated in the contract

There is no insurance cover

17. Article XXIV of the GATT 1994 the MFN Rule does not apply to:

The GATT (1994) has a number of sub-agreements including, among others:

A.TBT, PSI and TRIM

B.GATS, TRIPS, and the Agreement on the Rules of Origin

C.Agreement on the Rules of Origin, Agreement on Government Procurement and Agreement on Dispute Settlement Procedure.

D.Agreement on the Rules of Origin, TBT, and TRIPS

E.GATT, GATS and TRIPS.