Archive:Letters of Credit/Assessment

Assessment

1. A confirmed letter of credit includes a

a. funds transfer in US Dollars only.

b. a request for only a draft and commercial invoice.

c. a freely negotiable credit for the seller.

d. second bank's promise to pay upon complying document presentation.

2. Unless otherwise stated, all letters of credit are considered

a. revocable.

b. confirmed.

c. irrevocable.

d. transferable.

3. A transferable letter of credit allows the beneficiary to transfer the _____________ to a secondary beneficiary.

a. letter of credit

b. funds

c. documents

d. liability

(Correct answers: 1=d, 2=c, 3=a)

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