Please answer all questions. These are simole true, false mcq questions. If you don't answer completely, I will not just give you negative rating but make sure that you are removed off the platform

Factoring require that the bank have a very good knowledge of the industry and the credit worthiness of clients.

TRUE or FALSE

A bank confirming a letter of credit issued by another bank is called the advising bank.

TRUE or FALSE

Forfeit financing and factoring are very similar.

TRUE or FALSE

In a D/A draft or time draft bankers are instructed to collect funds upon delivery of the merchandise to the importer.

TRUE or FALSE

A revocable letter of credit offers better protection to exporters.

TRUE or FALSE

When importers buy in a consignment basis they assume all the risk.

TRUE or FALSE

International collections are the more complex involvement of banks in international trade.

TRUE or FALSE

A revolving credit agreement:

Permits clients to borrow on demand an unlimited amount

Permits clients to borrow on demand up to a certain maximum amount

Is generally a committed credit facility

A and C

B and C

Balance of payments borrowings:

Involve the financing of infrastructure projects

Are primarily concerned with budgetary deficits

Concern the financing of current-account deficits not offset by private capital inflows

A and B

A, B and C

The role of the Agent in loan syndication includes:

Assuring compliance with the terms of the loan agreement

Collecting funds from participating banks and disbursing to the borrower

Fixing of the interest rate against the floating base as per the agreement

Computing interest and principal due from the borrower and distributing to lenders

All of the above

An unadvised guidance line:

Assist bank clients in managing their financial needs

Is disclosed to clients as soon as it is approved by the bank

Is increased at the banks discretion

Is decreased at the banks discretion

C and D

Government borrowing abroad may be perform by:

The central bank and/or the ministry of finance

Government-owned authorities or corporations

Parastatals

As needed by local banks

A, B and C

The growth of infrastructure financing is linked to material advantages over other more traditional forms of lending because:

Makes economically viable large projects that otherwise will outstrip the financial capabilities of the firms involved

Enhances sponsors borrowing capacity in the view of prospective lenders

It may permit a greater degree of bank risk reduction through loan portfolio diversification

None of the above statements are true

All of the above statements are true

For banks, the most lucrative of infrastructure financing is:

Trade finance income

The open account income

Consignment income

d.Fee income

A, B and C

The basic transactions services related to the financing of international trade are:

Cutting information and transaction costs for importers and exporters

Making payments for international transactions

Providing foreign exchange and risk-shifting services

All of the above

None of the above