1.Which statement reflects the position of banks involved with letters of credit

a. banks are concerned with the authenticity of documents

b. banks are concerned with the authenticity of merchandise

c. banks are concerned with the underlying contract

d. none of the above

2. Another name for the beneficiary of a letter of credit is:

a. the seller's bank

b. the seller

c. the importer

d. the opening bank

3. Under anirrevocableadvisedletter of credit, assuming there are no discrepant documents(errors in the documents), the exporter will get paid:

a. when the seller submits documents to the advising bank

b. when the seller obtains the bill of lading from the steamship line

c. when the documents reach the issuing bank

d. when the buyeracceptsthe documents

4.On a recent transaction, the name of the buyer is FIT Imports, the name of the seller is Thailand Silk. FIT Imports requests that HSBC(Hong Kong and Shanghai Banking Corporation)issue a letter of credit in favor of Thailand Silk. Among the required documents to be submitted for Thailand Silk to get paid will be:

a. a bill of lading consigned to HSBC

b. a bill of lading consigned to Thailand Silk

c. a bill of lading consigned to FIT Imports

d. a bill of lading consigned to the Order of HSBC

5. Which of the following is likely to be considered a discrepancy on a letter of credit

a. a bill of lading dated one day before the latest shipment dateper thel/c

b. a bill of lading dated on the date of latest shipmentper thel/c

c. a bill of lading dated one day after the latest shipment dateper the l/c

d. all of the above would be considered discrepancies