A letter of credit would __ the cost of our imports.
A.reduce
B.raise
C.grow
D.drop
A.reduce
B.raise
C.grow
D.drop
W: Its main role is to transfer the payment obligation from payer to bank. It makes the payment safer for the exporter with the bank' s credit and guarantee, and simultaneously makes the supply of goods safer for the importer.
Q: What is the main role of a letter of credit?
(19)
A.It is to transfer the contract from bank to customer.
B.It is to transfer the payment obligation from buyer to seller through banks.
C.It is to transfer the confirmation from the issuing bank to confirming bank.
D.It is to transfer the documents from advising bank to issuing bank.
W: Then we shall try to find another bank to have our letter or credit advised.
Q: What do we learn from the conversation?
(18)
A.Standard Chartered Bank, London is one of our correspondent banks.
B.We can advise this L/C through Standard Chartered Bank, London.
C.We will send the advice of the L/C directly to the beneficiary.
D.Another bank will be chosen as the advising bank of this L/C.
A.covering
B.cover
C.covered
D.to cover
A.deposit
B.cost
C.charge
D.amount
A.The issuing bank will charge a fee for giving a standby credit letter.
B.The issuing bank will charge no fees for giving a standby credit letter.
C.The issuing bank will amend the standby credit letter if appropriate.
D.The issuing bank will revoke the standby credit letter if appropriate.
(10)
A.Our company prefers an L/C to collection.
B.Our company will apply for documentary collection.
C.Our company will apply for either documentary collection or sight letter of credit according to your advice.
D.Our company will adopt neither documentary collection nor letter of credit.
A.The appropriate documents showing that shipment has been made.
B.A letter of credit issued by the buyer's bank.
C.The draft on the drawer in the foreign country.
D.The document showing that the transaction has been settled.
What is a documentary letter of credit?
A.A conditional bank undertaking to pay an exporter on production of stipulated documentation.
B.A method of lending against documentary security.
C.An international trade settlement system biased in favor of importers.
D.All of the above.
A.negotiation
B.acceptance
C.sight payment
D.deferred payment