Unity Bank Post-course Assessment Welcome to your Unity Bank Post-course Assessment Please fill in your name and choose your preferred answer to the questions. When done, Please click the submit button. Full Name 1. The Uniform Rule for collections URC522 is the key guiding rule for Documentary Credit transactions.TrueFalse 2. Which of the following statement(s) is/are true of UCP600Published by the international Chamber of commerce (ICC)UCP600 is a set of rules applicable to documentary creditUCP600 is applicable to Standby Letters of creditUCP600 is the 6th revision by ICC since inceptionAll of the above. 3. Which of the following is NOT a valid mode of payment in International trade?Telegraphic TransferLetters of CreditDocumentary CollectionOpen AccountAdvance Payment 4. Which of the statements below best describes a Letter of credit?An unconditional guarantee to effect payment to a beneficiary when goods have been delivered.A promise that goods described in a document presentation have been delivered to the importer.An undertaking to make payment to a beneficiary provided conforming documents are presented to an issuing bank.An undertaken to make payment to the beneficiary in the event that the goods are not delivered to the importer.All of the above. 5. When an Irrevocable unconfirmed Letter of credit is issued to a foreign beneficiary, the obligation to pay lies with the confirming bank.TrueFalse 6. A promissory note is a financial document usually issued byThe issuing BankThe Remitting BankThe Importer/BuyerThe Exporter/SellerNone of the above 7. Under a Documentary Collection transaction, who has the obligation for payment?The Collecting bank.The remitting bankThe importerThe exporterThe Issuing bank 8. Under which transaction will a Nigerian bank make more revenue?Unconfirmed Letter of Credit.Confirmed Letter of CreditBills for CollectionAdvance PaymentOpen Account 9. Which of the following is not a special type of Letter of Credit (LC)?Red Clause LCUnconfirmed LCRevolving LCBack-to-back LC 10. A transferable Letter of credit involves two letters of credit and two different beneficiaries.TrueFalse 11. Which of the following document is an exchange control document?Form MCCVOTerminal delivery order.Packing ListManufacturer’s certificate 12. Which of the following is not a party to a Letter of credit transaction?Issuing bankNegotiating bankRemitting bankConfirming bankAdvising Bank 13. Payment under a Standby Letter of Credit (or bank guarantee) is made when the opposing party has not fulfilled his obligation under a contract.TrueFalse 14. The Bill of Exchange is a promise to make payment of a certain sum of money to a stated party at a specified future date. It is signed in accordance to the mandate of the issuing party. This is a correct description of a Bill of exchange.TrueFalse 15. Which of the following is not a trade financing method.Bill AvalizationPre-negotiationForfaitingBanker’s AcceptanceTrust Receipt 16. A cross boarder credit line enables banks to offer US$ financing without cash collateral.TrueFalse 17. Which of the following is the major risks applicable to a foreign currency financing transaction?Interest rate riskDocumentation riskLoss or damage riskExchange rate riskPerformance risk 18. Which of the following statements is correct about Nigeria import regulation?Final exchange control documents must be submitted to the Authorized dealer not later than 90 days from negotiation date.Issuance of Letters of credit shall predate the approval of form M in all cases.Manufacturer’s certificate shall be presented only when item of import is a regulated productAll document related to import under Bills for collection can be sent directly to the importer by the exporter for the clearance of the goods.All of the above 19. The difference between a Letter of Credit (LC) and a Standby Letter of credit (SBLC) is that under the LC, payment is made when the transaction has been executed but in the case of the SBLC payment is made when the transaction fails.TrueFalse 20. Which of the following statement is NOT correct about a Bill for collection Transaction?Shipping Documents must be accompanied by a Collection OrderThe Bill of exchange must be drawn on the Collecting bankThe shipping document must be routed through the Remitting and Collecting banks.All of the aboveNone of the above Time is Up!