KEY OF INTERNATIONAL SETTLEMENT
Chapter 1
1.Put the following phrases into English 贸易壁垒 进口关税 全球经济一体化 资金转移 有形贸易 无形贸易 国际惯例 全球金融同业通讯协会 trade barrier import tariff economic globalization fund transfer tangible trade intangible trade international customs and practices SWIFT 2.Put the following sentences into English
(1) 国际结算涉及有形贸易和无形贸易，外国投资，从其他国家借贷资金，等等。
The international settlement involves tangible trades, intangible trades, foreign investments, funds borrowed from or lent to other countries and so on. (2) 许多银行注重发展国际结算和贸易融资的业务。
Many banks have focused on their business of international settlement and trade finance. (3) 大多数国际间的支付来自于世界贸易。
Most of the international payments originate from transactions in the world trade. (4) 一般来说，国际结算的方式分为三类：汇款、托收和信用证。
Usually the international settlement is divided into three broad categories: remittance, collection and letter of credit.
3. True or False
1) International payments and settlements are financial activities conducted in the domestic
country. (F)
2) Fund transfers are processed and settled through certain clearing systems.(T)
3) Using the SWIFT network, banks can communicate with both customers and colleagues in a
structured, secure, and timely manner.(T) 4) SWIFT can achieve same day transfer.(T)
4.Multiple Choice 1) SWIFT is __B__ A. in the united states
B. a kind of communications belonging to TT system for interbank’s fund transfer C. an institution of the United Nations D. a governmental organization
2) SWIFT is an organization based in __A___ A. Brussels B. New York C. London D. Hong Kong
3) A facility in fund arrangement for buyers or sellers is referred to __A___
A. trade finance B. sale contract C. letter of credit D. bill of exchange
4) Fund transfers are processed and settled through __C___ A. banks B. SWIFT
C. clearing system
D. telecommunication systems
5) __C__is the reason why international trade first began. A. Uneven distribution of resources B. Patterns of demand C. Economic benefits
D. Comparative advantages
5. Answer the following questions
1) Where are the medium of exchange originated from?
Tracing back the history of international settlement, the medium of exchange originated from coins to notes.
2) What will inevitably lead to under the international political, economic and cultural
exchanges?
The international political, economic and cultural exchange inevitably leads to credits and debts owed by one country to another.
3) Why do banks focus on the development of the businesses of international settlement?
Banks focus more and more on the development of the businesses because it is a major resource of profits.
4) What will banks do to meet the higher and higher demand of the international market?
Banks need to develop innovative products and deliver the best services possible in whatever way they can. Chapter 2
1.Put the following phrases into English 资金转移 清算系统 银行竞争 可兑换货币 fund transfer clearing system banking competition convertible currency international payment 国际支付 2.Put the following sentences into English (1) 用于国际结算的货币是可兑换的货币。
Currencies used in the international settlement are convertible currencies. (2) 每一个通信和支付系统都有自己的使用规则。
Each communication and payment system has its own rules. (3) 有五种美元清算的方式。
There are five US dollar fund transfer payment methods.
(4) 欧元是欧盟国家使用的货币。
Euro is the single currency of the European Union. (5) 香港作为国际金融中心必须遵循国际惯例。
As an international financial center, Hong Kong must follow international payment practice.
3. True or False
1) CHIPS payments are irrevocable and subject to a same-day net settlement process.(T)
2) Book transfers are payment made between parties that maintain accounts at the different
bank.(F)
3) In Japan, cash is not far more often used than checks for payment at the retail level.(F)
4) Not later than July 2002, the Euro will replace the national currencies in all public and
private transactions.
4.Multiple Choice
1) The following are the special problems for international trade except for __C__ A. using foreign languages and foreign currencies B. under foreign laws, customs and regulations C. having risks
D. numerous cultural differences
2) All the parties to a collection are bound by ___C___ A. UCP400 B. UCP500 C. UCR522 D. URC254
3) An additional risk borne by the seller when granting a credit to the buyer is that the latter
will not __D___ A. accept the bill
B. take up the documents C. take delivery
D. make payment at maturity
4) To the exporter, the fastest and safest method of settlement is __B__ A. letter of credit B. advance payment C. collection D. banker’s draft
5) To the importer, the fastest and safest method of settlement is __C_ A. letter of credit B. cash in advance C. open account D. banker’s draft
6) Which is the real international payment system? __A__ A. TARGET B. FedWire
C. CHAPS D. SWIFT
5. Answer the following questions
1) How will fund transfers be processed and settled?
Fund transfers are processed and settled through certain clearing systems. 2) What is FedWire?
FedWire is an electronic payment system operated by the U.S. Federal Reserve. It si used to make US dollar payments to banks and their customers throughout the United States. 3) When will the euro start to use?
From January 1,1999, Euro is the single currency of the European Union. 4) What is the strongest of SWIFT?
The strongest feature of SWIFT is message text standards.
Chapter 3
1. Put the following phrases into English 总资产 缺乏经验 全球策略 专业服务 total assets lack of expertise global strategy professional service financial statement 财务报表 2.Put the following sentences into English
(1) 两家银行建立代理行关系的原则是基于双方的互惠互利。
The overall principle to establish correspondent banking relationship between two banks is on the basis of mutual benefits. (2) 一家银行对其所在国金融系统的重要性是对该银行进行评级的重要因素。
The importance of a bank to its country’s financial system is a major factor in the rating process. (3) 穆迪和标准普尔在对银行进行评级时有许多相似之处。
Moody and Standard & Poor’s (“S&P”) share many similarities in rating banks.
(4) 许多著名的大银行是根据一定的程序来向代理行提供信用额度。
The credit line for a correspondent is worked out according to certain procedures in many sizeable and well-know banks. (5) 银行不仅可从贸易融资中获利，而且还可以介入金融活动之中。
Not only banks can gain from trade finance, they can also engage in those financial activities.
3.True or False
1) Risk management strategies should be taken into consideration when rating correspondent
banks.(T)
2) A world wide computer network for monitoring the line is maintained by many banks.(T) 3) A bank should introduce or modify those products in order to have those products to be
marketed in its banking operation.(T)
4) Some correspondents will not extend credit facilities to the bank with nostro account and
offer a preferential account, so that conducting business will become more convenient and easier.(T)
4. Multiple Choice
1) From the point of view of a Chinese bank, __B__ is our bank’s account in the book of an
overseas bank, denominated in foreign currency. A. a vostro account B. a nostro account C. a mirrio account D. a record account
2) A bank gets to know its exact position of funds by __A___ A. reflecting the credit balance B. examining the mirror account C. consulting a foreign bank D. checking the nostro account
3) Statements of balance of international payment don’t include __D__ A. current account B. capital account C. balancing account D. visible account
4) __A__ refers to an exchange of services or assets between countries. A. Invisible trade B. Visible trade
C. International trade D. Balance of trade
5) Each country has to earn __B__ to pay for imports. A. money
B. foreign exchange C. cash D. currency
5.Answer the following questions
1) How will ratio of earning be divided?
Ratios of earning can be divided into ratio of capital return (Earning/ Total Capital, ROE) and ratio of asset return (Earning/ Total Capital, ROE) .
2) Why do banks develop the correspondent relationship with foreign banks?
For the purpose of rendering best service to the banks’ clients, it is essential for the banks to develop direct correspondent relationship with foreign banks and offer more diversified banking services, thereby playing an increasingly prominent role in promoting and regulating the growth of the national economy.
3) What do American banks and European banks usually do in their financial activities?
American banks are active in marketing their products and services in the field of fund clearing, Trade finance has always been the main subject of correspondent banking
operations by many European banks for quite a long time. 4) What should the correspondent files be?
The correspondent files should be concise, but complete, and updated.
Chapter 4
1. Put the following phrases into English 大小写金额 无条件的书面支付命令 远期汇票 跟单汇票 无条件的支付承诺 流通工具 amount in words and figures unconditional order of payment in writing term bill documentary draft unconditional promise of payment negotiable instrument 2.Put the following sentences into English
1) 由于这张信用卡的持卡人不讲信用，发卡银行将取消该卡。
The issuing bank of this credit will cancel the holders card because of his poor credit standing.
2) 旅行支票易于在国外银行、旅店、商店、机场等兑现。
Traveler’s checks are easily encashabkes, hotels, ships and airports abroad. 3) 汇票和本票的定义有一些相似之处。
There are some similarities between the definition of a bill of exchange and a promissory note.
4) 请开立一张以Mr. Smith为付款人的金额为2000美元的即期汇票。 Please draw a sight draft on Mr. Smith for US dollars 2000.
2. True or False
1) In check transaction, the drawer and the payer are the same person.(T) 2) A check is a demand bank draft.(T)
3) A draft is a conditional order in writing.(F)
4) The person who draws the bill is called the drawer.(T) 5) Any usance bills need to be accepted.(T) 6) There is no acceptor in a promissory note.(T)
7) There are only two parties in a promissory note.(T) 8) Traveller’s checks are negotiable instruments.(T) 9) Traveller’s checks are fixed, round amounts.(T)
10) A line of credit is given by a bank according to the cardholder’s financial status.(T)
3. Multiple Choice
1) A check must be signed by __A__. A. the drawer B. the drawee C. the payer D. the payee
2) When financing is without recourse, this means that the bank has no recourse to the __D__
3)
4)
5)
6)
if such drafts are dishonored. A. drewee B. payee C. payer D. drawer
A time bill may be accepted by the __B__ A. drawer B. drawee C. holder D. endorser
__A__is drawn by the exporter and sent to the buyer. A. Draft
B. Promissory note C. I.O.U D. Check
Taveller’s checks are in __D__ amounts. A. fixed B. round
C. convenient
D. fixed, round and convenient
If a bill is a __D__ bill, the documents will be handed over against payment of the bill. A. tenor B. sight C. clean
D. documentary
5. Answer the following questions
1) Under which circumstances do banks usually ask for endorsement?
Bank usually ask for endorsement of check when the check in favour of joint payees is credited to a sole account and when the check is cashed over the counter. 2) What are the essentials of a draft?
The essentials of a draft are as follows: an unconditional order; in writing; signed by the person giving it; drawee; payment date; a sum certain in money; payee; date and place of issuance of a draft; bearing the words” exchange for”. 3) What is meant by a documentary bill?
A documentary bill refers to one that is accompanied by the relevant documents that are needed to complete the export transaction.
4) What is the important difference between the bill of exchange and the promissory note?
The important difference between the bill of exchange and the promissory note is that the promissory note is written and signed by the person who promises to make the payment (the buyer), and sent to the person who is owed the money (the exporter). A bill of exchange, in contrast, is drawn by the exporter and sent to the buyer (who “accepts” term bill).
5) How many parties are there in a promissory note? What are they?
There are two parties in a promissory note, and they are maker and holder. Chapter 5
1.Put the following phrases into English 海外分支机构和代理行 汇款人账户 SWIFT密押 授权签字 overseas branches and correspondent banks remitter’s account swift authentication key authorized signature financial institution 金融机构 2.Put the following sentences into English
1) 由于电信业的迅猛发展，大多数的付款业务都是通过电汇方式完成。
With rapid telecommunication, most payment transactions are handled by telegraphic transfer. 2) 再付款业务中总是会出现一些差错。
In the process of payment transfer, some mistakes may occur.
3) 处理付款业务员中的典型错误是将头寸付款方式和链式付款方式的报文混淆。
It is a typical mistake to confuse the message types of the cover method with those of the serial method.
4) 在一些国家，通常用于国内付款的链式方式也用于跨境付款。
In some countries and for some currencies, the serial method --- typical for domestic payments --- is also used cross-border.
5) 电汇常常用于大写金额和时间较紧的情况。
T/T is often used when the remittance amount is large and the transfer of funds is subject to a time limit.
3. True or False
1) Remittance refers to the transfer of funds from one party to another among different
countries through banks.(T)
2) Mail transfer can be replaced in the time of telecommunication developed rapidly.(F)
3) Under the serial payment method, the instruction to credit a beneficiary account is dent
together with the instruction to debit sender’s account.(T)
4) Serial payment method cannot, however, delay the payment between different time
zones.(F)
4. Multiple Choice
1) The remitting bank checks the documents received __D__. A. as a service to its clients B. to avoid unnecessary C. before sending them out D. all of the above
2) Large payments should be made by __D__ A. TT B. SWIFT C. MT
3)
4)
5)
5. 1)
2)
3) 4)
5)
D. A or B
A __D__ payment does not take as long as an MT payment. A. SWIFT B. TT C. DD D. A or B
Mail transfers are sent to the correspondent bank __C__, unless other wise instructed by clients.
A. by courier service B. by ordinary mail C. by airmail D. by seamail
When a customer asks its bank to make a telegraphic transfer to a beneficiary abroad, the charges may __A__
A. be paid either the remitter or the remittee B. be debited against the nostro account C. be credited to the vostro account D. be paid by the remitting bank
Answer the following questions
How do you define the two types of fund transfer?
Remittance can be defined as two typed of fund transfer: to a remit and to draw a draft. “To remit” refers to the funds to be transferred from remitter to a payee through banks, while “to draw a draft” means that the payee gets the funds from the remitter collected by banks. What are the three main ways to make a remittance? Give us a brief description of the three?
A mail transfer is to transfer funds by means of a payment order or a mail advice. A demand draft is often used when the customer wants to transfer the funds to his beneficiary by himself. Telegraphic transfer refers to remittance by SWIFT.
What are the two methods adopted in the payment transactions by T/T? They are cover payment method and serial payment method.
what are the differences of the two methods used in the payment transaction?
In the cover method, the customer payment instruction is sent separately from the instruction to transfer the funds, In the serial method, the customer [payment and the fund transfer are sent together.
When will the interbank compensation be used and what are the related errors occurring in the payment transactions?
In the process of payment transfer, some mistakes may occur, such as late payment., duplicate payment, under and over payment, wrong account at the right bank and so on, which may arise loss for a bank, The Rules of Interbank Compensation is therefore worked out to settle the dispute among banks.
Chapter 6
1.Put the following phrases into English 运输单据 托收指示 需要时的代理 拒绝证书 印花税 shipping document collection instruction agent in case of need protest r stamp duty open account 赊账 2.Put the following sentences into English
1) 跟单托收是用于出口商既不想用赊账也不愿意用信用证的情况。
Documentary collections are suitable in cases where the exporter is reluctant to supply the goods on an open account basis, but does not need the strong security provided by a documentary credit. 2) 《跟单托收统一惯例》是国际托收业务中通行的规则。
The Uniform Rules for Collections (URC) form an internationally accepted code of practice covering documentary collections.
3) 单据应符合进口国家的法律和法规的要求。
The type of documents should comply with the laws and regulations of the importing country.
4) 拒绝证书是法庭认可的拒付的法律依据，它要由公证机构来制作。
Bill protesting is legal evidence of dishonor acceptable to account of law, and it will come into force by a notarization of notary office.
3. True or False
1) A collection on the basis of commercial credit is usually processed through banks acting as
the intermediary.(T)
2) Banks have responsibility to examine the documents thoroughly.(F)
3) Collecting bank handles the collection business according to the collection instruction.(T) 4) In receipt of dishonor advice, the remitting bank must give appropriate instructions as to the
further handling by the collecting bank.(T)
4.Multiple Choice
1) The instructions for collection are mainly __D__ A. those in the contract
B. written on the Bill of Exchange C. given by the importers D. given by the exporters
2) It will be more convenient if the collecting bank appointed by the seller __B__ A. is a large bank
B. is the remitting bank’s correspondent in the place of the importer C. is in the exporter’s country
D. acts on the importer’s instructions
3) The operation of collection begins with __B__
4)
5)
6)
7)
8)
A. the customer and the remitting bank
B. the remitting bank and the collecting bank C. the presenting bank and the drawee
D. the collecting bank and the presenting bank
Detailed instructions must be sent to the collecting bank __B__ A. in the application form B. in the collection order C. in the documents D. both A and B
The collecting bank will make a protest only when __C__ A. the documents are rejected B. a case of need is nominated
C. specific instructions concerning protest are given D. protective measures in respect of the goods are taken If it is stated as D/P, the documents can be released __A__ A. against payment B. against acceptance C. in either way
D. against acceptance pour aval
__A__ is the bank to which the principal has entrusting the collection, A. The remitting bank B. The collecting bank C. The presenting bank D. Both A and B
__C__ must make his instructions to ____ clear in his collection order. A. The remitting bank … the collecting bank B. The principal … the drawee
C. The principal … the remitting bank D. The drawee .. the collecting bank
5. Answer the following questions
1) What is a collection in the international settlement?
After the exporter has shipped the goods or rendered services to his customers abroad, he draws a bill of exchange on the latter with or without shipping documents attached thereto and then gives the draft to his bank together with his appropriate collection instructions. 2) What are the parties of a collection?
They are exporters, importers, remitting banks and collecting banks. 3) What is a documentary collection?
A documentary collection is an operation in which a bank collects payment on behalf of the seller (the principal) by delivering documents to the buyer.
4) How many types of documentary collection are there and what are they?
There are two types of documentary collection: documents against payment and documents against acceptance.
5) What does URC522 refer to?
The Uniform Rules for Collections (URC) form an internationally accepted code of practice covering documentary collections.
6) What are the duties of remitting bank and collecting bank?
Duties of the remitting bank and the collecting bank are documents pressing and operation upon the international practice and customs.
Chapter 7
1.Put the following phrases into English 商业用途 有条件的付款承诺 契约安排 付款义务 commercial utility conditional undertaking of payment contractual arrangement obligation of payment independent responsibility 独立责任 2.Put the following sentences into English
1) 在此契约安排下的每一项条款都是独立的。
Each item in contracts in this arrangement is independent of one another.
2) 进口商也要对远期汇票进行承兑并到期付款。
An importer is also obliged to make an acceptance on the term bill of exchange and make payment on its due. 3) 既然大多数的信用证都是不可撤销的，故此滋养印就在开证申请书上。
Since the great majority of credits are irrevocable, the indication of irrevocability is printed in the application form. 4) 出口商在向他的银行提示单据前就应确信其单据满足了信用证的要求。
Before the exporter presents the documents to his bank, he must ensure that they fully meet the requirements laid down in the credit.
5) 银行必须根据信用证的条款和要求仔细地审核单据。
The bank must check the presented documents carefully against the wording of the terms of credit.
3. True or False
1) Three parties are involved in the contracted arrangement concerning a documentary
credit.(T)
2) The credit follows principles of independence and abstraction.(T) 3) The documents and the goods are not separated from each other.(F)
4) As long as the documents presented by the beneficiary are in complete compliance with the
terms and conditions of the credit, the issuing bank or the bank nominated by the credit shall fulfill the undertaking to pay, accept or negotiate.(T)
5) As for the exporter’s bank, it will pay or negotiate against documents presented by the
exporter provided that they are in compliance with the terms and conditions of the credit.(T)
6) The importer may not reject to issue the credit of the exporter does not effect performance
bond upon the stipulation on the sales contract.(F)
4.Multiple Choice
1) A letter of credit is __B__ A. a formal guarantee of payment
B. a conditional undertaking to make payment C. an unconditional undertaking to make payment D. a two bank guarantee of payment
2) A revocable credit cannot be amended or cancelled only after __C__ A. the documents under it have been honored B. it has been amended once
C. the advising bank has notified the beneficiary of its opening D. it has been confirmed by a correspondent bank
3) __D__ gives the beneficiary a double assurance of payment. A. An irrevocable credit B. A revocable credit C. A confirmed credit
D. An irrevocable confirmed credit
4) Before opening a credit, the issuing bank should __D__ A. go through the contract terms B. fill in the application form
C. sign an agreement with the customer
D. inquire into the customer’s credit standing 5) Settlement by documentary credit is fair to __B__ A. the shipping company
B. the trading companies concerned C. the banks involved D. all of the above
6) In credit transactions, the goods and the documents are sent to the importer __A__ A. in different ways B. in the same way
C. in different directions D. at one time
7) The exporter can receive the payment only when __C__ A. he has shipped the goods
B. he has presented the documents
C. the documents presented comply with he credit terms D. the importer has taken delivery of the goods
8) Banks are obligated to verify the documents received to see that __C__ A. they are authentic B. they are regular
C. they are those listed in the collection order D. they are in the right form
5. Answer the following questions
1) What are the roles of a letter of credit?
Letter of Credit is a popular method of payment in international trade and one of the most important methods of financing. It plays an important role in the guarantee and financing of trade in the international trade.
2) What are the primary parties of a letter of credit?
The primary parties to a Letter of Credit are the applicant, the issuing bank and the beneficiary.
3) What should the exporter do in a letter if credit?
The exporter should dispatch the goods or perform the service on time and prepare the documents required under the credit to be ready for presentation, 4) How do you understand a bill of lading?
A bill of lading, the most important document in overseas transactions, is a document evidencing shipment. I t is issued by the carrier or his agent as a receipt for goods accepted for carriage by sea. It also contains the terms and conditions of the contract of carriage. A bill of lading is a document of title. Only the holder of the bill of lading can take possession of the goods. It is usually made out to order and can therefore be transferred by endorsement.
Chapter 8
1.Put the following phrases into English 全球金融市场 破产法 合同义务 信用评估 global financial market bankruptcy law contractual obligation credit evaluation economic recession 经济衰退
2.Put the following sentences into English
1) 用于国际贸易中的保函分为两类：直接保函和间接保函。
The guarantees used in international business can be divided into two categories: direct guarantees and indirect guarantees. 2) 银行开具各种类型的保函：投标保函、履约保函、预付款保函、尾款保函。
Banks issue various types of guarantee or bond, and they are bid bonds, performance bonds, maintenance or retention bonds.
3) 预付款保函向买方提供了一个资金安全的保证。
The advance payment guarantee provides financial security to the buyer. 4) 开立传统的信用证是为了国际贸易中货物交易的付款。
The traditional documentary letter of credit serves the purpose of securing payment of the contract price in the international trade of goods. 5) 信用证和保函的主要不同点是：信用证是一个付款工具，而保函是一个合同义务被履行
的保证。
The main difference between a letter of credit and a guarantee is that the letter of credit actuallyrepresents a payment instrument while the guarantee is an assurance that contractual obligations will be fulfilled.
3. True or False
1) Bank guarantees are written instruments issued by banks to an overseas buyer if the seller
fails to fulfill his obligations under a contract.(T)
2) Most bank guarantees are intended to secure the buyer’s commitment to deliver the goods
or to render a service in a correct fashion.(F)
3) A bank guarantee is not a unilateral contract between a bank as guarantor and a beneficiary
as warrantee, in which the bank undertakes to make payment to the beneficiary within the limits of a stated sum of money if a third party fails to perform an obligation.(F)
4) The nature of a standby letter of credit is ,to give a security similar to a bank guarantee.(T) 5) The key feature of standby L/C is that they are usually not listed on the issuer’s or
beneficiary’s balance sheet.(T)
4.Multiple Choice
1) A bond is a guarantee to __A__ that _____ will fulfill his contractual obligations. A. the buyer.. . that exporter B. the exporter.. . that buyer C. the guarantor… the buyer D. the exporter.. . that guarantor
2) one of the main functions of a banker is to accept __D__ from the customers. A. money B. cash C. advance D. deposit
3) All guarantees should include the principal debtor, the __A__ and the guarantor. A. beneficiary B. creditor C. mortgagee D. lender
4) the bond should state that claims must be received __D__ than the expiry date.
A. a little earlier B. a little later C. not earlier D. not later
5) The borrower will use the __B__ of the facility for financing of said contract. A. margin B. proceeds C. profits D. interests
5. Answer the following questions 1) What is a bank guarantee?
A bank guarantee is a unilateral contract between a bank as guarantor and a beneficiary as warrantee, in which the bank undertakes to make payment to the beneficiary within the
2)
3)
4)
5)
limits of a stated sum of money of a third party fails to perform an obligation. When will a bid bond be used?
A bid bond will be used in the following situation: The exporter, who tenders to a project, generally of about 5 to 10 of the contract value.
What is the advantage for using standby letter of credit?
The development of standby letters of credit has allowed banks to avoid using up their scarce reserves but still help their customers with needed financing. What is the function of a performance guarantee?
A performance guarantee is issued by a bank to the buyer or importer at the request of seller or exporter of goods or services, guaranteeing that the exporter will carry out the contract in compliance with the terms and specifications. Why is the standby L/C so popular in banking business?
Many bankers have found it cost effective to improve their institutions’ capital-to-assets ratio either by selling loans off the balance sheet or by packaging, issuing securities against them, and setting those assets aside.
Chapter 9
1.Put the following phrases into English 法律文件 多式联运提单 面值 带有不符点的单据 legal document multimodal transport document face value discrepant document nominated bank 指定银行 2.Put the following sentences into English
1) 出口商收到信用证后，将根据信用证的要求准备出货和缮制单据。
On receipt of a letter of credit, the exporter will prepare his shipments according to the requirements of the credit and complete the relating documents. 2) 一般来说，信用证要规定最后交单日期。
In general, the latest date of presentation is specified in the credit. 3) 在信用证业务中，银行应只审核单据。
In credit operations, banks must make examination on the basis of the documents alone. 4) 银行对没有要要求提示的单据不予理会，以避免由此而产生的拒付。
Banks should disregard conditions without stating the documents to be presented in compliance to avoid unnecessary refusal. 5) 提单是出口商和承运人之间的运输合同。
The bill of lading is an evidence of the contract for carriage between the exporter and the carrier.
3. True or False
1) If the documents appear to be inconsistent with the credit, the negotiating bank will inform
the beneficiary to amend the discrepancies.(T)
2) A credit will not fix an exact date of expiry and an effective place for presentation,(F)
3) Banks should disregard conditions without stating the documents to be presented in
compliance to avoid unnecessary refusal.(T)
4) A commercial invoice is not an import demonstration issued by the exporter.(F)
5) The value of the goods insured should be what it is required by the credit or at least 110%
of the CIF or CIP value of the goods.(T)
4.Multiple Choice
1) If a credit calls for an insurance policy, banks will accept __A__ A. an insurance policy B. an insurance certificate C. A or B
D. both A and B
2) The documents will not be delivered to the buyer until __B__ A. the goods have arrived B. the bill is paid or accepted
C. the buyers has cleared the goods D. both A and B
3) The importance of distinction between financial documents and commercial documents lies
in that it helps decide whether it is __D__ A. inward collection or outward collection B. bill collection or goods collection C. cash collection or check collection
D. clean collection or documentary collection 4) When is a bill of lading issued?__B__ A. When the shipper makes up the order B. When the carrier received the goods
C. When the producer manufactures the goods
D. When the carrier delivers the goods to the consignee 5) A commercial invoice is __B__ A. a contract for delivery of the ma=erchandise B. a demand for payment
C. a statement describing the merchandise, its cost, and shipping charges D. a promise of payment
5. Answer the following questions 1) What are the functions of B/l?
There are four main functions of B/L:
a) A bill of lading acts as a receipt of the goods from the shipping company to the exporter.
b) A bill of lading is an evidence of the contract for carriage between the exporter and the
carrier.
c) A bill of lading is a quasi-negotiable document.
d) A bill of lading acts as a document of title to goods being shipped overseas. 2) What are the final procedures of export L/C?
Dispatching documents and making reimbursement claim are the final procedures of export L/C.
3) What are the liabilities of the negotiating bank?
The liabilities of the negotiating bank are to assert whether the documents appear on their face value, to be in compliance with the terms and conditions of the credit and that there is no inconsistency.
4) Is the beneficiary liable for the risk of delivery loss of documents from the nominated bank
to the issuing bank?
The beneficiary is not liable for the risk of delivery loss of documents from the nominated bank to the issuing bank.
5) What does the dual mature dates mean?
A credit with dual mature dated contains both an expiry date and a date for the latest shipment, if these two dates are the same ,an amendment can be applied to extend the credit expiry date.
Chapter 10
1.Put the following phrases into English 信誉调查 提货担保 转移风险 第二还款来源 信用额度 credit investigation shipping guarantee transfer risk the second source of repayment credit line
2.Put the following sentences into English
1) 国际贸易融资是银行向进口商和出口商提供的国际结算项下的融资服务。
International trade finance is a financial service under the international trade settlement provided by banks for importers and exporters. 2) 信用额度内容和贸易融资产品是构成贸易融资的重要因素。
Credit line structure and trade financing facilities constitute important factors of trade finance.
3) 在信用证业务下，银行应该特别关注贸易背景和市场。
The bank should always keep an eye on the trade background and its market under the letter of credit.
4) 监督是控制打包放款风险的重要措施。
Supervision is an important step to control the risk of packing loan. 5) 出口押汇是出口银行提供的贸易融资产品。
Export bill purchased refers to a financing facility provided by exporter’s bank.
3. True or False
1) Trust Receipt (T/R) is not a kind of credit line granted by the bank to the importer.(F) 2) Business of letter of credit is not a contingent liability of a bank.(F)
3) The bank should establish a credit file for the importer, and is ready to cut the proportion of
loan tat any time if there is any sign of risk.(T)
4) The bank must be careful when it makes a packing loan for a transferable letter of credit.(T) 5) The bank can only purchase the documents and bills when thy comply with the terms and
conditions of the credit, because the issuing bank is obliged to effect payment upon the
conformity of documents with the letter of credit.(T) 4.Multiple Choice
1) To the exporter, the fastest and safest method of settlement is __B__ A. letter of credit B. advance payment C. collection D. banker’s draft
2) To the importer, the fastest and safest method of settlement is __C__ A. letter of credit B. advance payment C. collection D. banker’s draft
3) The cost for the production will decrease if the goods are produced on a large scale. This is
called __A__ A. economies of scale B. variety of style C. specialization
D. patterns of demand
4) Invisible trade consists of such items as __D__ A. transportation services across national borders B. foreign tourist expenses
C. insurance services across national borders D. product exchange across national borders
5) In international trade, the seller ships the goods to the buyer when there is no purchase
made. The seller retains title to the goods until the buyer has sold them. This is __C__ A. bidding B. agency
C. consignment D. auction
5. Answer the following questions
1) What are the facilities of trade finance included?
Those facilities include letter of credit issuing, bill purchased, trust receipt, shipping guarantee, receivables and warehouse bill as pledge, anticipatory credit, packing loan, bill discounted, factoring and forfeiting. 2) What does the soft clause mean?
The soft clauses of a letter of credit are important factors to affect the refund of a packing loan. The soft clauses are those which beneficiaries cannot or are hard to fulfill even if they make grate efforts.
3) Why will the bank be well informed about the market?
The bank should also be kept informed about the market, because the market is changeable, and the operation of a letter of credit will last more than one month. 4) What does Forfaiting refer to?
Forfeiting is the term generally used to denote the purchase of obligations falling due at
some future date, arising from deliveries of goods and services—mostly exporter transactions – without recourse to any previous holder of the obligation. 5) What is export financing?
Export financing is a fund arrangement provided by banks for export-oriented transactions.