International Settlement Test__ 2.docVIP

International Settlement Test 2 Ⅰ. Define the following terms.(16%) 1. remittance 2. mail transfer 3. collection 4. outward collection Ⅱ. Decide whether the following statements are true or false.(20%) 1. The representative in case of need appointed by the buyer to arrange the warehouse and insurance in the event of non-acceptance and/or non-payment. ( F ) 2. The remitting bank under D/D is generally reluctant to stop payment on a draft issued by itself for which will have an unfavorable effect on its credit-worthiness.( T ) 3. In D/D, remitting bank draws a banker’s draft on paying bank ordering the latter to pay in the future the stated amount to the holder of the draft.( F ) 4. A payment order, airmail advice or credit advice or please debit advice is an authenticated order in writing addressed by one bank to another instructing the latter to pay a sum certain in money to a specified person or beneficiary named thereon. ( T ) 5. The only means of authenticating a cable transfer is the authorized signatures.( F ) 6. Mail transfer is often used when the client wants to transfer the funds to his beneficiary himself. （F ） 7. If the remitting bank opens a current account with the paying bank, the reimbursement may be effected by debiting nostro account of the remitting bank .( T ) 8. T/T is faster and more expensive as compared with M/T or D/D. (T ) 9. The buyer(drawee) is generally the customer of a bank who prepares documentation and submits them to the remitting bank with a colletion order for payment. ( F ) 10.Documents against acceptance offers the greater security to the exporter than documents against payment. ( F ) 11. When the colleting bank releases the documents to the buyer on the trust receipt, the legal title to the goods remains with the entruster. ( T ) 12. The remitting bank will consider to purchase the documentary bill from the seller only under D/A. ( F ) 13. If the collecting bank is not located near the importer, it would