QZ Bonus 4468
QZ Bonus 4468
3. What document does the seller need to obtain from the shipping firm to present to the
advising bank?
A) Certificate of origin
B) Commercial invoice
C) Negotiable bill of lading
D) Inspection certificate
E) Insurance document
Answer: C) Negotiable bill of lading
Explanation: According to Section 9 – International Payments, it is mentioned that “The
seller (beneficiary) ships the goods to the buyer and obtains a negotiable transport document
(negotiable bill of lading) from the shipping firm/agent”.
4. In a deferred payment credit, when does the buyer make the payment to the bank?
A) Immediately upon receiving the goods
B) After the bank has received the documents
C) At a specified time after accepting the documents
D) Upon receiving the bill of lading
E) Once the goods are inspected and approved
Answer: C) At a specified time after accepting the documents
Explanation: According to Section 9 – International Payments, in a deferred payment credit,
the buyer agrees to pay the bank at a specified future time after accepting the documents,
providing a period between delivery of the goods and payment.
5. Why is it important for the buyer's instructions to the issuing bank to be clear and concise?
A) To ensure the goods meet the quality standards
B) To avoid any discrepancies that could void the credit
C) To expedite the shipping process
D) To ensure the seller receives payment on time
E) To reduce the transaction fees
Answer: B) To avoid any discrepancies that could void the credit
Explanation: According to Section 9 – International Payments, clear and concise instructions
are crucial to avoid discrepancies in the documentary credit, which could lead to it being
voided by the banks, potentially derailing the transaction.
In the issuance phase, what must the buyer do to initiate a documentary credit?
A) Notify the seller directly.
B) Apply to their bank and open a documentary credit.
C) Ship the goods to the seller.
D) Contact the advising bank first.
E) Present documents to the issuing bank.
Answer: B) Apply to their bank and open a documentary credit.
Explanation: According to Section 9 – International Payments, it is mentioned: "The buyer
applies to his bank (issuing bank) and opens a documentary credit naming the seller as
beneficiary based on specific terms and conditions that are listed in the credit."
What is the purpose of the Uniform Customs and Practice for Documentary Credits (UCP)?
A) To standardize international shipping procedures.
B) To unify banking practices regarding documentary credits.
C) To resolve trade disputes between countries.
D) To regulate international trade tariffs.
E) To certify the quality of exported goods.
Answer: B) To unify banking practices regarding documentary credits.
Explanation: According to Section 9 – International Payments, it is mentioned: "The Uniform
Customs and Practice for Documentary Credits (UCP) is the internationally recognized
codification of rules unifying banking practice regarding documentary credits."
What should the seller do immediately upon receipt of the documentary credit?
A) Ship the goods.
B) Contact the issuing bank.
C) Examine the credit to ensure it conforms with the original sales contract.
D) Request an amendment.
E) Make a cash payment to the advising bank.
Answer: C) Examine the credit to ensure it conforms with the original sales contract.
Explanation: According to Section 9 – International Payments, it is mentioned that "Upon
receipt of the documentary credit, the seller should immediately and carefully examine it to
ensure it conforms with the original sales contract with the buyer and that all the conditions
stated in the credit can be met."