Chapter 6:Other Methods of International Settlement Multiple Choice: 1) The application for L/G represents a certain legal obligations and responsibilities ( Answer: Between the applicant and the guarantor bank/ between the applicant and bank/ between the applicant and the beneficiary between the guarantor bank and reissuing bank the advising 2) This guarantee is issued at the request of the exporter to the importer (the beneficiary) when the advance by the exporter in the event of the non-performance of his contractual obligations. This L/G is called ( Answer: Tender Guarantee/ Retention guarantee/ Performance Guarantee/Advance payment guarantee 3) Which situation below DOES NOT NEED a confirming bank? ) Answer: The credit of guarantor bank is poor/ The credit of applicant is poor/ The nation of guarantor bank is foreign exchange shortage/ the guarantor bank's country is political and economic instability 4) The applicant of Tender Guarantee is) Answer: Tender's government/ the bidder/ tender/ winning bidder 5) Which one is the pioneer of forfaiting business? ( Answer: The American commercial banks/ Zurich Switzerland Bankers Association/ British Commercial Banks Bank of China