金融英语考试选择题练习(8)
Once the exporter has been advised that a letter of credit has been issued in its favor, many exporters make the mistake of starting to prepare or fulfill the requirements of the foreign customer’s purchase order before actually receiving the actual letter of credit from the opening or issuing bank. Unless the exporter has had good or excellent prior experience with the foreign customer and its issuing bank, the exporter runs the risk of having the goods ready for shipment, without receiving the original letter of credit. The exporter runs a risk because it may or may not be able to comply with certain terms and conditions contained
in the actual original letter of credit. It is always conceivable new conditions might be added to the credit instrument. Or the goods might be shipped and arrived at the overseas port of destination without any original documents because the original L/C arrives late. Thus, the foreign customer will be unable to clear goods through customs, and the goods will be stored in a customs warehouse to accrue expensive demurrage charges.
The answer to the above mentioned problem is to have the opening bank issue the letter of credit via tested telex or SWIFT to the advising or negotiating bank as the "original operative instrument" which can be presented for payment by the beneficiary. The exporter must make sure the negotiating or confirming bank, usually the advising bank, is willing to accept the aforementioned as the original operative instrument. Sometimes advising, negotiating, and even confirming banks who pay on behalf of issuing banks still want to wait for the original written letter of credit to be received by them via mail. This might indicate a financial problem with the issuing bank or some sort of technical problems between the banks which the exporter should investigate immediately. The solution helps reduce or eliminate any delays in credit timely for payment after shipment of the goods. Remember in many cases banks want the original on-board ocean bill of lading presented to them with the original letter of credit.
71. The exporter should start to prepare or fulfill the requirements of the foreign customer’s purchase order _______________.
A. before the exporter has been advised that a letter of credit has been issued in its favor
B. after the exporter has been advised that a letter of credit has been issued in its favor
C. before the exporter actually receives the letter of credit from the opening or issuing bank
D. after the exporter actually receives the letter of credit from the opening or issuing bank
72. If the exporter starts to prepare or fulfill the requirements of the foreign customer’s purchase order
when he has been advised that a letter of credit has been issued, he may run the risk of ________.
A. having the goods ready to board a steamship which may not comply with certain terms and conditions stipulated in the letter of credit
B. having the goods shipped to the destination and cleared through customs
C. having the goods stored in the custom’s warehouse without any charges
D. None of the above
73. According to the passage, the importer can clear goods through customs on presentation of ____________.
A. the original letter of credit
B. the original documents
C. the credit instrument
D. expensive demurrage charges
74. The bank that issues a letter of credit is called ____________.
A. an issuing bank
B. a confirming bank
C. a negotiating bank
D. an advising bank
75. Which of the following is NOT true?
A. The negotiating bank always agrees to accept the tested telex letter of credit as the original operative instrument.
B. The advising bank sometimes agrees to pay on behalf of the issuing bank.
C. The confirming bank sometimes still wants to wait for the original letter of credit.
D.The exporter sometimes pays no attention to the financial problem with the issuing bank.
in the actual original letter of credit. It is always conceivable new conditions might be added to the credit instrument. Or the goods might be shipped and arrived at the overseas port of destination without any original documents because the original L/C arrives late. Thus, the foreign customer will be unable to clear goods through customs, and the goods will be stored in a customs warehouse to accrue expensive demurrage charges.
The answer to the above mentioned problem is to have the opening bank issue the letter of credit via tested telex or SWIFT to the advising or negotiating bank as the "original operative instrument" which can be presented for payment by the beneficiary. The exporter must make sure the negotiating or confirming bank, usually the advising bank, is willing to accept the aforementioned as the original operative instrument. Sometimes advising, negotiating, and even confirming banks who pay on behalf of issuing banks still want to wait for the original written letter of credit to be received by them via mail. This might indicate a financial problem with the issuing bank or some sort of technical problems between the banks which the exporter should investigate immediately. The solution helps reduce or eliminate any delays in credit timely for payment after shipment of the goods. Remember in many cases banks want the original on-board ocean bill of lading presented to them with the original letter of credit.
71. The exporter should start to prepare or fulfill the requirements of the foreign customer’s purchase order _______________.
A. before the exporter has been advised that a letter of credit has been issued in its favor
B. after the exporter has been advised that a letter of credit has been issued in its favor
C. before the exporter actually receives the letter of credit from the opening or issuing bank
D. after the exporter actually receives the letter of credit from the opening or issuing bank
72. If the exporter starts to prepare or fulfill the requirements of the foreign customer’s purchase order
when he has been advised that a letter of credit has been issued, he may run the risk of ________.
A. having the goods ready to board a steamship which may not comply with certain terms and conditions stipulated in the letter of credit
B. having the goods shipped to the destination and cleared through customs
C. having the goods stored in the custom’s warehouse without any charges
D. None of the above
73. According to the passage, the importer can clear goods through customs on presentation of ____________.
A. the original letter of credit
B. the original documents
C. the credit instrument
D. expensive demurrage charges
74. The bank that issues a letter of credit is called ____________.
A. an issuing bank
B. a confirming bank
C. a negotiating bank
D. an advising bank
75. Which of the following is NOT true?
A. The negotiating bank always agrees to accept the tested telex letter of credit as the original operative instrument.
B. The advising bank sometimes agrees to pay on behalf of the issuing bank.
C. The confirming bank sometimes still wants to wait for the original letter of credit.
D.The exporter sometimes pays no attention to the financial problem with the issuing bank.