1.In a documentary L/C, the Advising bank receives the L/C from issuing bank and: *

A.Prepares its own instructions and advises the exporter

B.Advises the L/C and its instruction to the exporter

C.Advises the exporter whether to accept the L/C or not.

D.All of the above

2.All of the followings are parties to a documentary collection EXCEPT_____________. *

A.Nominating bank

B.Advising bank

C.Issuing banK

D.Confirming bank

E.All of the above

3.In the process of L/C who will issue the instruction letter for L/C. *

A.The Importer

B.The Issuing Bank

C.Exporter

D.Drawer

E.Both c and d

F.None of the above

4.Which of the following is a correct statement about standby letter of credit? *

A ,standby letter of credit is the same as a normal letter of credit but it is used in a situation where the bank agrees to release an agreed sum of money to one party if the other party who opened the standby L/C does not fulfill certain obligation.

b. A standby letter of credit is a type of instrument that will undertake payment once the seller performs in accordance with the terms of the commercial contract.

c. A standby letter of credit is opened and issued in favor of a foreign government agency when a company has fulfilled all of their obligations under a foreign government contract.

d. A standby letter of credit is sometimes used as an unconditional instrument, meaning that the guarantor can delay payment to the beneficiary on simple demand.