Chapter 12 Review Questions
Let us see how much you have learned in this chapter by going over these review questions.
- Who opens a letter of credit?
- Confirming Bank
- Opening Bank
- Paying Bank
- What is the riskiest payment term from the seller's perspective?
- Documentary Collection Against Payment
- Letter Of Credit
- Minimum Guarantee
- Payment In Advance
- From the seller's perspective, which is the best type of letter of credit?
- Irrevocable, at sight, and advised.
- Irrevocable, at sight, and confirmed.
- Revocable, at sight, and advised.
- Revocable, at sight, and confirmed.
- Revocable, usance, negotiation, and advised.
- What is an open account?
- It is a letter of credit that has been opened.
- It is a letter of credit that has not yet been paid.
- It is an unsecured credit extended to the buyer.
- It is the closest international equivalent to cash on delivery.
- It is when the exporter opens an account at a bank for an overseas reseller.
© 2004 John Michael Pierobon