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Quiz 1 — Basics of Letter of Credit (Easy)

5 multiple-choice questions

1. 1. Which rulebook governs Documentary Credits internationally?
   A. URC 522 B. UCP 600 C. ISBP 745 D. Basel III
2. 2. A Letter of Credit is issued by whom?
   A. Exporter B. Importer C. Issuing Bank D. Shipping Company
3. 3. The LC becomes legally binding when:
   A. Exporter signs it B. Buyer confirms it C. Issuing bank issues it D. Goods are shipped
4. 4. What does “irrevocable LC” mean?
   A. Can be changed anytime B. Cannot be amended without consent of all parties C. Valid for only 60 days D. Used only for small shipments
5. 5. Which document typically evidences shipment of goods under LC?
   A. Invoice B. Packing List C. Bill of Lading D. Certificate of Origin

Quiz 2 — UCP 600 Concepts (Medium)

5 multiple-choice questions

1. 1. As per UCP 600, banks deal with:
   A. Goods only B. Documents only C. Goods and documents D. Payment instructions only
2. 2. What is the maximum time for banks to examine documents under UCP 600 Article 14?
   A. 2 banking days B. 5 banking days C. 10 calendar days D. 7 working days
3. 3. A discrepancy in LC documents means:
   A. A minor clerical error is allowed B. Documents do not comply with LC terms C. Shipment is delayed D. Payment is immediate
4. 4. The party obligated to pay under a sight LC is:
   A. Exporter B. Applicant C. Issuing Bank D. Carrier
5. 5. If the LC does not state whether it is transferable, it is considered:
   A. Always transferable B. Non-transferable C. Partially transferable D. Confirmed

Quiz 3 — ISBP Application (Advanced)

5 multiple-choice questions

1. 1. ISBP 745 provides guidelines for:
   A. Drafting LC contracts B. Consistent examination of documents C. Customs clearance D. Shipment tracking
2. 2. Under ISBP, invoice descriptions must:
   A. Match LC word-for-word B. Not conflict with LC description C. Include full technical details D. Be signed by the importer
3. 3. If the LC requires ‘clean on board Bill of Lading’, it must:
   A. Show no clauses detrimental to goods B. Include all shipping charges C. Be signed by exporter D. Show freight paid
4. 4. Under ISBP, a packing list must:
   A. Be signed B. Exactly match invoice quantity C. Include freight cost D. Show insurance details
5. 5. If the LC is silent on document dates, ISBP says documents must be:
   A. Dated prior to LC issue B. Undated C. Dated on or before shipment date D. Dated after shipment

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