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金陵科技学院国际结算英文版习题集

金陵科技学院国际结算英文版习题集
金陵科技学院国际结算英文版习题集

《国际结算》(英文版)习题集

Chapter 1: International Settlement under Globalization

5. Please decide whether the following statements are true or false.

(1) Greater imports offer consumers a wider variety of goods at higher prices, while providing strong incentives for domestic industries to remain competitive. ( )

(2) Information technology makes the international trade more efficient than ever. ( )

(3) International lending is often accompanied by international payments. ( )

(4) Under the term CFR, it is the seller’s responsibility to insure the goods transported.

(5) Cash in advance, open account, collection and documentary credit are the usual methods of payment to settle international trade transactions. ( )

(6)To the exporter of goods, the most satisfactory arrangement as far as payment is concerned is to receive it in advance. ( )

(7) Trade on open account arrangement usually satisfies the seller’s desire for cash and the import’s desire for credit. ( )

6. Please choose the answers to each of the following questions.

(1) international payments and settlements may arise from( ).

A. commercial payments

B. payments for the services rendered

C. payments between governments

D. transfer of funds among countries.

(2) An additional risk borne by the seller when granting a credit to the buyer is that the latter will not_______.

A. accept the bill

B. take up the documents

C. take delivery

D. make payment at maturity

(3) To the exporter, the fastest and safest method of settlement is_____.

A. letter of credit

B. advance payment

C. collection

D. banker’s draft

(4) To the importer, the fastest and safest method of settlement is_____.

A. letter of credit

B. cash in advance

C. open account

D. banker’s draft

7. Please answer the following questions.

(1) Explain the definition of international settlement.

(2) How many main types of international settlement methods are used in the internatinal trade?

(3) What are the liabilities of a exporter in the international settlement?

Chapter 2: International Clearing Systems And SWIFT

5. Please decide whether the following statements are true or false.

(1) Since the 1950's, the US dollar has been the primary currency for the settlement of international payments. ( )

(2) To facilitate automated payments, CHIPS has assigned a four-digit Universal Identification Number (UID) to banks, branches, subsidiaries and corporate customers around the world that maintain accounts with their CHIPS participants. ( )

(3) Euro is the new single currency used by the European Council. There are two types of value transfer about Euro payment transaction systems (TARGET and Euro 1). ( )

6. Please choose the answers to each of the following questions.

(1) Currencies such as ( ) used in the international settlement are convertible currencies.

A. USD

B. JPY

C. EUR

D. GBP

(1) US dollar clearing systems do not include ( ).

A. CHIPS

B. FEDWIRE

C. book-transfer

D. ACH

E. CHAPS

(2) international payments and settlements may arise from( ).

A. commercial payments

B. payments for the services rendered

C. payments between governments

D. transfer of funds among countries.

(3) All the parties to a collection are bound by____ ________.

A. UCP400

B. UCP500

C. URC522

D. URC254

Chapter 3: Correspondent Banking

5. Please decide whether the following statements are true or false.

(1) In a sense, banks themselves are the best customers for each other. ( )

(2) Correspondent relationship is dispensable in conducting international banking business. ( )

(3) Besides vostro accounts, most accounts opened by the bank with vostro account are investment accounts. ( )

(4) A bank’s access to foreign exchange can not be rated higher than that of its country. ( )

(5) Ratio of liquidity assets refers to the ration of those assets can be shifted into payable instruments. The smaller the ratio, the better the liquidity a bank will have. ( )

6. Please choose the answers to each of the following questions.

(1) After the establishment of correspondent relationship, two banks should exchange ( ) with each other.

A. authorized signatures book

B. test key

C. SWIFT key

D. schedule of terms and conditions

(2) Credit line establishment for correspondent is one of the most important works. Banks usually have a special department to be in charge of risk. Risk may include ( ).

A. country risk

B. rating bank risk

C. political risk

D. currency and interest risk

(3) The receiving bank verifies this number with the arrangement so as to be certain that the ( ) is sent by a particular bank.

A. Cable

B. Telex

C. Email

D. Telephone

7. Please answer the following questions.

(1) What are types of accounts from which the account holding bank can render services?

(2) What the steps are taken by a bank to grant credit line?

Chapter 4: Instruments

5. Please decide whether the following statements are true or false.

(1) The time draft which payment is to be made at specified future time is called tenor draft. ( )

(2) From the import's point of view, the ideal arrangement is to draw a sight draft under a documentary credit, and to receive payment of it immediately upon presentation. ( ) (3) A banker's draft is a negotiable instrument drawn payable to order by a bank as drawer on the same bank as drawee. ( )

(4) A cheque is a demand bank draft. ( )

(5) A draft is a conditional order in writing. ( )

(6) There is no acceptor in a promissory note. ( )

(7) A promissory note is an unconditional order in writing. ( )

(8) There are only two parties in a promissory note. ( )

(9) In a promissory note, the maker and drawee are the same person. ( )

(10)A term bill may be accepted by the endorser. ( )

(11) In the case of MT, the remitting bank issues a draft to its customer, and instructs its foreign branch or correspondent by mail to make the payment to the beneficiary. ( )

(12) Drafts which are payable at a future date are called demand drafts. ( )

(13) Banks have no liability for any delay or loss caused by postal or telex failure.

(14) Promissory notes are commercial documents. ( )

(15) In the case of documents payable at sight the presenting bank must make presentation for payment without delay. ( )

(16) Accepted drafts must be presented for payment on maturity. ( )

(17) A bill should be protested within one business day of dishonour. ( )

(18) The instructions of the drawee override the collection order. ( )

(19) A remitting bank will not accept unqualified acceptance. ( )

(20) Acceptance must be made at the back of the bill and signed by the drawee. ( )

6. Please choose the answers to each of the following questions.

(1) The most common types of negotiable instruments are ( ).

A.bill of exchange

B. promissory note

C.cheque

D. traveller’s cheque

(2) A cheque must be signed by ( ).

A. the drawer

B. the drawee

C. the payer

D. the payee

(3) The person paying the money is a ( ) of a cheque.

A the drawer

B the drawee

C endorser

D endorsee

(3) Only by endorsement the interest in the bill of exchange can be transferred by ( ) .

A the drawee

B the drawer

C the holder

D any person to the bill

(4) If Barclays instructs Citibank to pay a sum of USD100000 to Midland, its nostro account should be ( ).

A credited

B debited

C increased

D decreased

(5) The reasonable time concerning protest for non-payment or non-acceptance is usually ( ).

A. half a day

B. one or two days

C. ten hours

D. twenty-four-hours

7. Please answer the following questions.

(1) Negotiable instruments are used significantly in a paper-based payment and fund transfer system. What is characters of instruments?

(2) What duties does a holder of a bill of exchange have ?

(3) What is endorsement of bill of exchange?

(4) What is acceptance of bill of exchange?

(5) What is dishonor of bill of exchange?

Chapter 5: Means of International Settlement —Remittance

5. Please decide whether the following statements are true or false.

(1) Usually a remitting bank sends a payment order with tested key to the paying bank abroad by mail and debits the paying bank’s account with it if they have account relationship with each other.

( )

(2) Bank draft is a rather flexible remitting instrument for it can not only remit, but also draw a draft. ( )

(3) With rapid telecommunication, most payment transactions are handled by telegraphic transfer. ( )

6. Please choose the answers to each of the following questions.

(1) The remittance will be done by several means ( ).

A.transfer of mail

B. draft and telegraphic

C.credit card

D. traveler’s check and E-Banking or Web

(2) A.promissory note is written and signed by ( ) ,and sent to ( ).

A.the exporter…the buyer

B.the buyer…the e xporter

C.the exporter…the another exporter

D.the buyer…the another buyer

(3) ( ) is drawn by the exporter and sent to the buyer.

A.Draft

B.Promissory note

C.I.O.U.

D.Cheque

7. Please answer the following questions.

(1) What is the reason that a customer selects bank draft as a remittance instrument instead of telegraphic transfer?

(2) In the process of payment transfer, some mistakes may occur, such as late payment, duplicate payment, under and over payment, wrong account at right bank and so on, which may arise loss for a bank. What is the Rules of Interbank Compensation is therefore worked out to settle the dispute among banks?

(3) What does remittance refer to?

(4) What is the differences between T/T and M/T?

(5) Why is it faster by using T/T and by using M/T?.

Chapter 6: Means of International Settlement-- Collection

5. Please decide whether the following statements are true or false.

(1) A documentary collection is more secure than settlement on open account, because the importer can may take possession of the goods with either making payment or accepting a bill of exchange. ( )

(2) With a D/A arrangement, the importer takes possession of the goods after payment is actually effected. ( )

(3) When remitting bank has an account with collecting bank, the collection instruction will be “ please debit our account with you under you SWIFT/airmail advice to us.”. ( )

(4) When the collecting bank has an account with the remitting bank, the collection instruction

will be “please collect the proceeds and authorize us by SWIFT/airmail to debit your account with us.” ( )

(5) If the instructions are D/P, the importer’s bank will release the documents to the importer only against payment.

(6) It is unnecessary to carry out the collection instruction in the case of non-payment.

(7) A documentary collection is an arrangement whereby the seller draws only a draft on the buyer for the value of the goods and presents the draft to his bank.

(8) Under documentary collection, the remitting bank has no obligation to examine documents.

(9)Normally D/P will apply with sight drafts and D/A will apply with usance drafts.

(10) The four main parties to a documentary collection are the principal, the remitting bank, the collecting bank and the drawee.

(11) The principal is usually the importer.

(12) Banks have no obligation to take any action in respect of the goods to which a documentary collection relates.

(13) The authority of the “case of need” must be specified in the collection order.

(14) It is unnecessary to carry out the collection order in the case of non-payment.

6. Please choose the answers to each of the following questions.

(1) When there is no account relationship between remitting bank and collecting bank, the collection instruction will be “please collect and remit the proceeds to X Bank for ( )our account with them under their SWIFT/airmail advice to us.”

A.credit

B. debit

C. remit

D. collect

(2) The instructions for collection are mainly ( ).

A. those in the contract

B. written on the Bill of Exchange

C. given by the importers

D. given by the exporters

(3) It will be more convenient if the collection bank appointed by the seller ( ).

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

(4) The operation of collection begins with ( ).

A. the customer and the remitting bank

B. the remitting bank and the collection bank

C. the presenting bank and the drawee

D. the collection bank and the presenting bank

(5) Detailed instructions must be sent to the collecting bank ( ).

A. in the application form

B. in the collection order

C. in the documents

D. both A and B

(6) The collection bank will make a protest only when ( ).

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

(7) If it is stated as D/P ,the documents can be released ( ).

A. against payment

B. against acceptance

C. in either way

D. against acceptance pour aval

(8) ( )is the bank to which the principal has entrusting the collection.

A. The remitting bank

B. The collection bank

C. The presenting bank

D. Both A and B

(9) ( ) 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

(10) If collection order states that partial payments are accepted, the presenting bank will ( ).

A. only release the documents to the drawee after full payment has been received

B. release the documents to the drawee after partial payment has been received

C. refuse to accept the partial payment

D. not release any documents to the drawee[

(11) After the goods have been shipped, the exporters present the documents to ( ).

A. the remitting bank

B. the collecting bank

C. the reimbursing bank

D. the opening bank

(12) The instructions for collection are mainly ( ).

A. those in the contract

B. written on the Bill of Exchange

C. given by the importers

D. given by the exporters

(13) The remitting bank checks the documents received ( ).

A. as a service to its clients

B. to avoid unnecessary

C. before sending them out

D. all of the above

(14) It will be more convenient if the collection bank appointed by the seller ( ).

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

(15) The commission charged by a third bank involved in the collection should be paid by ( ).

A. the exporter

B. the importer

C. the correspondent bank

D. the remitting bank

(16) The operation of collection begins with ( ).

A. the customer and the remitting bank

B. the remitting bank and the collection bank

C. the presenting bank and the drawee

D. the collection bank and the presenting bank

(17) Detailed instructions must be sent to the collecting bank ( ).

A. in the application form

B. in the collection order

C. in the documents

D. both A and B

(18) Banks are obligated to verify the documents received to see that ( ).

A. they are authentic

B. they are regular

C. they are those listed in the collection order

D. they are in the right form

(19) The collection bank will make a protest only when_____.

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

(20) If it is not stated as D/A or D/P, the documents can be released______.

A. against payment

B. against acceptance

C. in either way

D. against acceptance pour aval

7. Please answer the following questions.

(1) With a documentary collection, however, the exporter is not certain, at the time of dispatch of the goods whether the buyer will actually make the full payment. What the cases that this form of settlement is most appropriate?

(2) What is the procedures of documentary collection?

(3) What is the documentary collection?

(4) What dose a collection instruction include?

(5) What duties does a Remitting Bank have in the collection business?

(6) What will a Collecting bank do in case of dishonor by the drawee in the collection business? Chapter 7: Letter of Credit

5. Please decide whether the following statements are true or false.

(1) Each item in contracts in this arrangement is dependent of one another and is to control the relationship among the parties. ( )

(2) As for the Issuing Bank, it offers its only credit instead of actual funds to the importer by issuing the Credit. ( )

(3) Issuing Bank will not be a first obligator after it accepts the application of importer and opens

a letter of credit. . ( )

(4) Exporter may require amendment or reject the Credit if he should not satisfy himself that the terms and conditions called for in the credit are in agreement with the sales contract. ( ) (5) The Negotiating Bank will only have to examine the documents with reasonable care to ascertain whether or not they appear, on their face, to be in compliance with the terms and conditions of the Credit. ( )

(6) The expiry date and latest shipping dates specified in the credit must be strictly complied with the documents are presented too late, the bank is not allowed to honour them. ( )

(7) A back-to-back credit is mainly used by a middleman to get from a supplier goods which are sold or resold to a third party or parties. ( )

(8) An irrevocable credit can be amended,revoked or cancelled without the beneficiary’s consent. ( )

(9) An irrevocable confirmed documentary credit gives the beneficiary a double assurance of payment. ( )

(10) Usually the advising bank is the bank located in the same city as the buyer. ( )

(11) Credit, by the nature, are separate transactions from the sales or other contracts on which they may be based, and bank are in no way concerned wish or bound by such contracts. ( ) (12) It is documentary letter of credit that affords a high degree of safety for both buyers and sellers. ( )

(13) Under documentary letter of credit, the remitting bank has no obligation to examine documents. ( )

(14) The UPC rules have been in effect since 1923. ( )

(15) Usually the advising bank is the bank located in the same city as the buyer. ( )

(16) If the instructions are D/P the importer’s bank will release the documents to the importer only against payment. ( )

(17) Goods should not be dispatched direct to the address of a bank or consigned to a bank without prior agreement on the part of that bank. ( )

(18) A bank will handle the documents only on the basis of instructions received. ( )

6. Please choose the answers to each of the following questions.

(1) A revocable credit can not be amended or cancelled only after ( ).

A.the documents under it have been honoured.

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.

(2) ( ) 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

(3) In a letter of credit transaction, the bank pays the seller for ( ).

A.documents which agree with the credit

B merchandise which the buyer ordered

C merchandise which agree with the contract

D documents which agree with the contract.

(4) After the goods have been shipped, the exporters present the documents to ( ).

A. the remitting bank

B. the collecting bank

C. the reimbursing bank

D. the opening bank

(5) To the exporter, the fastest and safest method of settlement is ( ).

A. letter of credit

B. advance payment

C. collection

D. banker’s draft

(6) To the importer, the fastest and safest method of settlement is ( ).

A. letter of credit

B. cash in advance

C. open account

D. banker’s draft

(7) Before opening a credit, the issuing bank should ( ).

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

(8) The exporter can receive the payment only when ( ).

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

(9) In credit transactions, the goods and the documents are sent to the importer ( ).

A. in different ways

B. in the same way

C. in different directions

D. at one time

(10) Banks are obligated to verify the documents received to see that ( ).

A. they are authentic

B. they are regular

C. they are those listed in the collection order

D. they are in the right form

(11) A revocable credit can not be amended or cancelled only after ( ).

A. the documents under it have been honoured.

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.

(12) Back-to-back credits are advantageous to ( ).

A. all consumers

B. all manufacturers

C. all customers

D. all traders

国际结算英文版课后练习答案.doc

Chapter One 1.Fill in the blanks to complete each sentence. (1)local legal system, political, exchange risks (2)open account, advance payment, remittance and collection (3)letter of credit, bank guarantee (4)price terms, delivery terms (5)least/minimum, most/maximum (6)advance payment (7)open account (8)clean collection, documentary collection 2.略 3.Translate the following terms into English. (1)settlement on bank credit (2)the potential for currency fluctuation (3)to dear the goods for export (4)to pay the insurance premium (5)to carry out export formalities (6)the major participants in international trade (7)the commodity inspection clause (8)to fulfill the obligation to deliver the goods (9)the goods have passed over the ship's rail (10)International contract is concluded in a completely different context than domestic ones 4.Decide whether the following statements are true or false. ⑴ F (2)F (3)T (4)T (5) T (6)T (7)F (8)T (9)T (10) F 5.Choose the best answer to each of the following statements ⑴?(5) BCCBD (6)-(10) DACCC (11)-(15) BDDCD (16)-(20) DCACD Chapter Two 1. Fill in the blanks to complete each sentence. (1)barter (2)medium of exchange (3)expensive, risky (4)our ⑸ Vostro (6)vostro ⑺ nostro (8) specimen of authorized signatures, telegraphic test keys, terms and conditions, Swift authentic keys 2. Define the following terms (1)Correspondent relationship KA bank having direct connection or friendly service relations with another bank.』 (2)International settlements [[International settlements are financial activities conducted among different countries in which payments are effected or funds are transferred from one country to another in order to settle accounts, debts, claims, etc. emerged in the course of political, economic or cultural contracts among them. 3 (3)Visible trade [[The exchange of goods and commodities between the buyer and the seller across borders.2 (4)Financial transaction [[International financial transaction covers foreign exchange market transactions^ government

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