CITF Specimen 1

Certificate in International Trade and Finance (CITF) Specimen Paper 2 Hours
This question paper consists of two sections:
Section A: 90 stand alone multiple choice questions worth one mark each.
Section B: 2 case studies each with 5 related multiple choice questions. Each
question is worth one mark.
Basic silent desktop calculators with + - x / % and memory functions are allowed.
Scientific, programmable or calculators with any additional functions are NOT
allowed.
UCP600 applies throughout.
INSTRUCTIONS TO CANDIDATES
1. Answer ALL questions.
2. Read the instructions on both sides of the answer sheet carefully.
3. Do NOT open this exam paper until instructed to do so.
https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

Page 1 of 46
3. Do NOT open this exam paper until instructed to do so.
4. Answer all questions on the answer sheet provided. You may write on the
question
paper.
5. Before you leave the examination room you must hand in your answer sheet and
the
question paper and have them checked by the invigilator. Failure to do so will
invalidate your entry.
A qualification assessed and awarded by the ifs School of Finance, a registered

charity incorporated by Royal Charter.
Section A
1. The World Trade Organisation is primarily concerned with:
A international contract law.
B providing international trade finance.
C reduction of tariff barriers.
D regulating international payments.
2. Due to exchange control regulations, an importer is unable to obtain currency to

pay an
exporter. This is an example of:
A credit risk.

Page 2 of 46
B foreign exchange risk.
C product liability risk.
D sovereign government risk.
3. Under the terms of the CISG, which of the following contracts would be
invalid?
A The contract is given orally.
B The contract is unsigned.
C There is no firm indication of acceptance from the offeree.
D When the offer is revoked by the seller, after receiving acceptance from the
offeree.
4. Which of the following statements does not describe Incoterms? They:
A are incorporated into international law.
B can be binding on buyer and seller.
C can be described as terms of delivery.
D can be described as terms of shipment.
5. Which of the following is a document of title?
A Air waybill.
B Bill of lading.
C Commercial invoice.

Page 3 of 46
D Consular invoice.
6. Which of the following is true of both collections and letters of credit? They
both:
A enable the seller to increase the price of the goods after sale.
B give assurance that the goods will be safe during shipment.
C guarantee payment in advance.
D provide a basis for exchanging documents for payment.
7. A collection is known to the exporter's bank as:
A a documentary sight bill.
B a letter of credit.
C an electronic presentation.
D an outward bill for collection.
8. An importer wishes to have sufficient time to sell goods, before making

payment, whilst the
exporter wishes to retain some control over the goods. Which method of payment
would be
preferable to the importer?
A Documentary collection payable at sight.
B Documentary collection payable 60 days sight.

Page 4 of 46
C Documentary credit payable 60 days from shipment.
D 50% payment in advance and the balance paid 60 days after shipment.
9. The least secure method of payment for an importer is:
A documentary collection.
B documentary credit.
C open account.
D payment in advance.
10. Which of the following types of letter of credit is used as a guarantee of

contractual
undertakings?
A Back-to-back.
B Revolving.
C Standby.
D Transferable.
11. Import barriers:
A ensure domestic industries are more efficient.
B ensure that officials controlling the system are not corrupt.
C make imported goods cheaper in the importing country.
D make imported goods expensive for domestic consumers.

Page 5 of 46
12. Excess or catastrophe policies for exporters will typically cover what
percentage of loss over and
above an agreed excess?
A 75%.
B 80%.
C 90%.
D 100%.
13. The contract terms are 'FCA Gatwick Airport'. Which of the following
transport documents would
be acceptable to an importer?
A Air waybill, marked 'freight paid'.
B Air waybill, marked 'freight unpaid'.
C Bill of lading marked 'freight paid'.
D Bill of lading marked 'freight payable at destination'.
14. Which of the following is a document supplied by an exporter as a quotation to

a potential
buyer?
A Certificate of origin.
B Pro-forma invoice.

Page 6 of 46
C Status enquiry.
D Tender bond.
15. A letter of credit is issued on behalf of the:
A exporter.
B importer.
C shipping company.
D warehousing agent.
16. A collection will be treated by the collecting bank as:
A a documentary sight bill.
B a letter of credit.
C an electronic presentation.
D an inward bill for collection.
17. Which of the following is a common concept which outlines the levels of risk
in international
trade transactions? A risk:
A assessment.
B hierarchy.
C ladder.

Page 7 of 46
D statement.
18. A standby letter of credit:
A can be cancelled at the sole request of the importer.
B can be cancelled at the sole request of the issuing bank.
C cannot be cancelled until a claim has been made against it.
D cannot be cancelled without consent by all parties.
19. Which of the following is a provider of credit insurance?
A Atradius.
B ICC.
C CIA.
D Moody's.
20. COFACE is a government organisation that specialises in:
A export insurance.
B import logistics.
C money laundering detection.
D trade legislation.
21. A pro-forma invoice received by a seller is:
A a contractual offer.

Page 8 of 46
B a valid contract.
C an acceptance.
D an invitation to tender.
22. Which of the following is not a recognised method of managing foreign

exchange exposure?
Using:
A forward contracts.
B futures.
C options.
D premiums.
23. Under 'FCA Southampton Container Depot' terms, which of the following most
accurately
describes the responsibilities of the importer? Make arrangements at own cost and
risk to cover the transport of goods from:
A Southampton Container Depot to own premises.
B Southampton Container Depot to own premises and arrange insurance.
C Southampton Container Depot to own premises, covering the costs of insurance,

any
import licences and customs duties.

Page 9 of 46
D Southampton Container Depot to own premises, covering the costs of insurance
and
customs duties.
24. Under which of the following circumstances will a term bill of exchange
normally be paid?
A At sight.
B On acceptance.
C On acceptance, after the stipulated time period.
D On arrival of the documents at the importer’s bank.
25. Which of the following is true in respect of the advising, nominated and
confirming bank in a
letter of credit?
A One bank may assume all three roles and responsibilities.
B The applicant must bank with all three institutions.
C The beneficiary must agree which banks are used.
D The rules state that three separate banks must be used.
26. A bill of exchange, presented under a collection, has been accepted. What
should the collecting
bank do after advising the remitting bank?
A Forward the bill to the exporter.

Page 10 of 46
B Hold the bill until the due date for payment.
C Return the bill to the importer.
D Send the bill to the exchange control authorities.
27. Which of the following statements is true? With an option contract there is:
A an expiry date.
B an underlying loan.
C no agreed price.
D no premium.
28. Which of the following would not require a bank facility for the importer?
A Avalisation of a bill of exchange.
B Documentary collection.
C Documentary credit.
D Duty deferment guarantee.
29. ISP 98 states that in the event of dishonour, timely notice must be given. This
means that more
than:
A 24 hours is unreasonable.
B 48 hours is unreasonable.

Page 11 of 46
C 3 days is unreasonable.
D 7 days is unreasonable.
30. Which combination of risks mainly exist for an exporter when selling to a
country that has a
volatile inflation rate?
A Economic and cultural.
B Environmental and economic.
C Exchange and political.
D Political and legal.
31. In an option contract, the agreed rate is known as the:
A conversion rate.
B exchange rate.
C option price.
D strike price.
32. The impact of multilateral or bilateral agreements on trading countries is which

type of
environmental factor?
A Economic.
B Legal.

Page 12 of 46
C Political.
D Social.
33. Where a business has regular flows, both in and out, of the same currency,
which of the
following products would be most suited to managing the exchange risk?
A Currency account.
B Currency option.
C Forward contract.
D Futures contract.
34. Country A imposes economic sanctions against Country B when it carries out
unauthorised
nuclear testing. Your company which is based in Country A trades regularly with
Country B.
This represents:
A environmental risk.
B legal risk.
C political risk.
D technological risk.
35. Under the terms of a contract an exporter must cover the costs of export licence

Page 13 of 46
and customs
duties. Arrangements for loading the goods on the ship, costs of carriage and
freight are for the importer. Which of the following Incoterms will apply?
A CFR.
B EXW.
C FAS.
D FOB.
36. An accepted bill of exchange is held by the bank. What course of action is
always appropriate
for the bank to take?
A Discount the bill if payment is refused at maturity.
B Negotiate the bill if payment is refused at maturity.
C Present the bill promptly for payment at maturity.
D Protest the bill if payment is refused at maturity.
37. Which of the following must take place for the beneficiary to be assured of
payment under a
letter of credit?
A All documents submitted must comply with the credit.
B The beneficiary must have opened an account with the issuing bank.

Page 14 of 46
C The goods must be of an acceptable quality.
D The importer must have the money in its bank account.
38. Where a collecting bank agrees to take delivery of goods before receipt of the
documents under
a collection, the importer will have to provide which of the following to gain
access to the goods?
A Bill of exchange.
B Indemnity.
C Promissory note.
D Trust receipt.
39. A major exporter is embarking on its first transaction with an unknown buyer.
On which terms is
the exporter most likely to insist?
A Documentary collection.
B Documentary credit.
C Open account.
D Payment in advance.
40. A bill of exchange drawn on a bank under a letter of credit is called:
A a payment credit.

Page 15 of 46
B an acceptance credit.
C an export credit.
D an import credit.
41. A standby letter of credit would usually call for a certificate issued by the
beneficiary, stating
that the:
A goods have been insured.
B goods have been shipped.
C payment has been received.
D payment has not been received.
42. When using hard currencies, 'spot' transactions are generally settled by the
bank within how
many business days?
A One.
B Two.
C Four.
D Five.
43. Under 'FOB Liverpool' terms, which of the following most accurately
describes the

Page 16 of 46
responsibility of the exporter? The exporter:
A is responsible for all documentation up to the point when the goods pass over the
ship’s
rail at the port of unloading.
B is responsible for all documentation up to the point when the goods pass over the
ship’s
rail at the port of loading.
C is responsible for all documentation up to the point when the goods pass over the
ship’s
rail at the port of loading and insurance for the voyage.
D must complete all customs requirements in Liverpool and at the port of

unloading, supply
a commercial invoice and a clean bill of lading.
44. Which of the following is not a commercial document?
A A bill of lading.
B A packing list.
C A promissory note.
D An invoice.
45. Documents which are presented under a letter of credit but do not conform to
the terms are

Page 17 of 46
known as:
A discrepant.
B invalid.
C unconfirmed.
D uncredited.
46. A bank receives instructions to deliver documents against payment. Which of

the following terms
describes this type of transaction?
A A collection.
B A letter of credit.
C A line of credit.
D Counter-trade.
47. A without recourse invoice finance facility is one where the main risk for the
discounter is:
A credit risk.
B non-acceptance risk.
C non-performance risk.
D transit risk.
48. A standby letter of credit would be issued to a beneficiary who would normally

Page 18 of 46
be a:
A bank.
B creditor.
C debtor.
D shipping agent.
49. Which of the following products is best to use to 'hedge' exchange rate risk?
A Credit insurance.
C Forward contract.
D Negotiation.
50. Which of the following accurately reflects the characteristics of a bill of

exchange?
A A conditional order in writing.
B A conditional order in writing for a sum certain in money.
C An unconditional order in writing for a sum certain in money.
D An unconditional order in writing payable in the future.
51. Which of the following is a social factor which might impact on international
trade?
A Cultural differences.

Page 19 of 46
B Differences in safety standards.
C Exchange rate fluctuations.
D Policies on climate change.
52. Unless otherwise stated in the letter of credit, beneficiaries should normally
present documents
under a letter of credit within how many days of shipment?
A 21.
B 45.
C 60.
D 90.
53. An advantage for an exporter when utilising a factoring facility is that the:
A exporter will always perform its own credit control.
B exporter will save time and cost through use of the factor's credit control
systems.
C factor company can deal with queries relating to the underlying goods.
D factor company will be prepared to take only the less creditworthy business.
54. The purpose of a pre-shipment inspection certificate is to:
A accompany the bill of lading.
B accompany the insurance certificate.

Page 20 of 46
C reduce the risk of fraud.
D send in advance to the buyer.
55. In a documentary collection, the drawee is usually the:
A collecting bank.
B exporter.
C importer.
D remitting bank.
56. Under ISP 98, a standby letter of credit must be:
A discountable.
B forfaitable.
C irrevocable.
D negotiable.
57. The difference between the buying and selling rates, for foreign currencies,
quoted by a bank is
known as the:
A gain.
B pip.
C premium.

Page 21 of 46
D spread.
58. Under 'CFR' terms, which of the following is always the responsibility of the
importer?
A Insurance from the point the goods pass over the ship’s rail on loading.
B Insurance from the point the goods pass over the ship’s rail on loading and
seller’s
contingency insurance.
C Seller’s contingency insurance.
D Unloading costs.
59. Which of the following is an advantage of using a type of bill of lading that is
quasi-negotiable?
A The goods cannot be collected by a third party.
B The holder can obtain finance.
C The holder can pass on a good title to the goods.
D The holder can pass on a good title to the goods if they themselves have a good
title.
60. The origin of the funds has been obscured and funds invested in legitimate
assets. In money
laundering, this process is known as:
A integration.

Page 22 of 46
B layering.
C origination.
D placement.
61. The level of inflation between two countries is which type of environmental
factor?
A Economic.
B Legal.
C Political.
D Social.
62. The Incoterms CFR stand for:
A carriage and freight.
B carriage to frontier.
C cost and freight.
D cost to frontier.
63. What is the significance of a 'dirty' bill of lading?
A The carrier is likely to be unsuitable.
B The goods are likely to be damaged.
C The goods have been seized by customs as unfit for consumers.

Page 23 of 46
D The title to the goods covered by the bill of lading is impaired.
64. Which of following types of letter of credit would be the most appropriate for a
contract which
involves numerous and regular shipments?
A Back-to-back.
B Revolving.
C Standby.
D Transferable.
65. In a documentary collection, the principal is usually the:
A collecting bank.
B exporter.
C importer.
D remitting bank.
66. When insurance is provided on an invoice finance facility, the facility is said to
be:
A with acceptance.
B with recourse.
C without acceptance.
D without recourse.

Page 24 of 46
67. A standby letter of credit cannot be amended or cancelled by the issuer without
consent from
the person against whom the amendment or cancellation is asserted Which term or
phrase under ISP 98 does this describe?
A Creating amendments.
B Enforceability.
C Giving undertakings.
D Irrevocability.
68. A cheque made out to Cola company is stolen by an employee, who pays it into
their own bank
account. The employee's bank is guilty of:
A conversion.
B fraud.
C laundering.
D negotiation.
69. In a negotiation, an offer which is accepted subject to a number of conditions

represents which
of the following?
A Acceptance.

Page 25 of 46
B Counter-offer.
C Partial-offer.
D Tentative-acceptance.
70. A missing original bill of lading, which is part of a documentary collection,

puts the importer at
risk because:
A the holder of the missing bill may present it to the shipper and collect the goods.
B the shipper will not release the goods until the missing bill is found and
demurrage
charges will apply.
C their bank will automatically charge for the cost of the goods and an indemnity.
D they will have to pay for the goods without being able to collect them.
71. A major importer is negotiating with a new and unknown supplier overseas. On
which terms is
the importer most likely to insist?
A Documentary collection.
C Open account.
D Payment in advance.

Page 26 of 46
72. A letter of credit can provide a finance opportunity for:
A exporters only.
B importers only.
C neither importers nor exporters.
D both importers and exporters.
73. Normally, in international trade, compared with domestic transactions, which

of the following
risks will be the greater?
A Buyer risk.
B Financial risk.
C Supplier risk.
D Transport risk.
74. A demand bond, which has not been issued under URDG 758, will:
A automatically be subject to URDG 758.
B be automatically subject to ISP 98.
C be subject to the local laws and practices in the issuing country.
D not be valid.
75. LIFFE is which of the following?
A A credit reference agency.

Page 27 of 46
B A futures and options exchange.
C A model for assessing the external environment.
D An insurance company.
76. CMR documents come in sets of three. Who should receive each of the three
parts?
A Exporter, importer and customs.
B Exporter, importer and insurer.
C Haulier, exporter and customs.
D Haulier, exporter and importer.
77. Which of the following parties is not authorised under UCP 600 to confirm a
credit?
A The advising bank.
B The beneficiary's bank.
C The issuing bank.
D The nominated bank.
78. A bill of exchange can provide a finance opportunity for:
A exporters only.
B importers only.

Page 28 of 46
C both importers and exporters.
D neither importers nor exporters.
79. Which of the following provides an accurate summary of the information that
should appear on
a bill of lading using sea and road on 'CFR' terms? The name of the inland port of
collection:
A the export port, import port and the final inland port and the signature of the
carrier and an
indication that freight has been prepaid.
B the final inland port, the signatures of all carriers used for transportation and an
indication
that freight has been prepaid.
C the signature of the carrier and the export port.
D the signature of the carrier and the final inland port.
80. What is the typical maximum amount (percentage of the value) that a bank will
advance to the
exporter in anticipation of the proceeds of a collection? Up to:
A 50%.
B 70%.
C 90%.

Page 29 of 46
D 100%.
81. PESTEL is a commonly-used model for:
A analysing credit risk.
B assessing external factors.
C calculating exchange rates.
D making international payments.
82. A full set of clean on-board bills of lading will be required for which of the
following Incoterms?
A Ex Works.
B FAS.
C FCA a named place.
D FOB.
83. Which of the following is true in relation to currency option contracts?
A A profit may be made if rates move favourably.
B There is no premium payable.
C They are only available in US$ and euros.
D They are only suitable for exporters.
84. Which of the following shipping documents is desirable under 'CFR' terms?

Page 30 of 46
A Claused bill of lading marked freight payable.
B Claused bill of lading marked shipped on board.
C Clean bill of lading marked freight paid and shipped on board.
D Clean bill of lading marked shipped on board.
85. Company A contracts with Company B to build a bridge for Company B.

Company B requires a
guarantee from O Bank. Under URDG 758, who is the guarantor?
A A third party.
B Company A.
C Company B.
D O Bank.
86. Which of the following is not a recognised role for a bank involved in a
documentary credit
transaction?
A Advising bank.
B Confirming bank.
C Complying bank.
D Issuing bank.
87. The trade cycle is financed through:

Page 31 of 46
A capital expenditure.
B equity.
C mezzanine finance.
D working capital.
88. Which of the following shipping documents would be the most appropriate
under 'CFR Bilbao'
terms? Clean bill of lading marked:
A freight paid.
B shipped on board, freight paid.
C shipped on board, freight payable at destination.
D shipped on board, payable at Bilbao.
89. An exporter sells on open account terms to a European importer and the goods
are transported
by sea. A sea waybill will be preferable to a bill of lading because:
A goods can be released to the consignee without production of the waybills.
B it is a document of title.
C it is negotiable.
D it provides greater security and assurance, to the exporter, for goods transported
by sea.

Page 32 of 46
90. Under a collection, an accepted term bill will be paid:
A on acceptance.
B on the specified date.
C when the goods are shipped.
D when the goods have arrived.
Section B
Case Study 1
TJ Company sells computer games worldwide and is regularly expanding sales.

Competition in the marketplace means it is trading on documentary collection
terms. It has insisted on sight payments until recently, but buyers are increasingly
asking for longer credit terms.
TJ is concerned that it will lose control of the goods, and experiences delays in
payment which they cannot afford to finance. Credit assessments will take up staff
time and require more expertise.
TJ has also experienced a number of shortfall payments from buyers under Article
21 of URC 522. In addition, a recent new customer has complained that the goods
arrived before the documents.
91. The shortfall in funds due to TJ was as a result of:
A charges of the collecting bank.
B instalment payments.

Page 33 of 46
C interest charges.
D partial payment.
92. TJ is concerned about security of payment if a period of credit is allowed.

Which of the following
instructions should be included on the collection schedule to allow for redress in

the event of non-payment?
A Accept.
B Indemnify.
C Negotiate.
D Protest.
93. TJ wishes to discuss alternative sources of finance. Which of the following

would be most
suitable?
A Factoring.
B Produce loan.
C Red clause credit.
D Term loan in foreign currency.
94. When goods arrive before documents, they will be retained by the carrier and
incur:
A demurrage charges.

Page 34 of 46
B indemnity fees.
C interest charges.
D noting charges.
95. To improve control over goods despatched overseas, TJ should:
A appoint an agent overseas.
B consign goods to the overseas bank used by the buyer.
C consign goods to the overseas correspondent of the seller's bank.
D send goods directly to the buyer.
Case Study 2
The government of Byland commissions a nuclear power plant. It wants to ensure

that the contract is awarded to a company with undoubted financial capacity to
undertake the contract.
The economy of Byland is currently experiencing inflation of 15% and this is

expected to continue. Fusion Company, which eventually win the contract, is based
in Europe.
96. Which of the following products would be the most suitable for the
government of Byland
before the nuclear contract is awarded?
A Documentary letter of credit.
B Foreign exchange contract.

Page 35 of 46
C Performance bond.
D Tender bond.
97. Which product would be the most appropriate for the government of Byland on
completion of
the nuclear plant?
A Performance bond.
B Standby letter of credit.
C Supplier finance facility.
D Warranty bond.
98. Which of the following methods of finance would be the most appropriate for
the funding of this
project?
A Acceptance credits.
B Counter purchase.
C Eurobonds.
D Import loan.
99. What product would reduce the effect of inflation on Fusion Company's
profitability?
A A fixed rate loan in the currency of Byland.

Page 36 of 46
B A floating rate loan in the currency of Byland.
C A foreign exchange contract in euros.
D Payment in euros.
100. Fusion Company is anxious to protect itself against buyer default by the
government of Byland.
Which of the following products would be most appropriate?
A A contract issued under CISG.
B An unconditional bond.
C Commercial insurance.
D Credit insurance.
Answers
Multiple-choice Syllabus Ref
1 C The Trade Environment
2 D Issues associated with international trade products
3 C Procedures involved in Trade Contracts
4 A Trade terms and Incoterms
5 B Nature of financial, commercial and transport documents
6 D Nature of Doc Credits

Page 37 of 46
7 D Documentary collections in accordance with URC 522
8 B Risks involved in the trading methods in international trade
9 D Short, medium and long term trade finance
10 C Bank guarantees
11 D The Trade Environment
13 B Trade terms and Incoterms
15 B Nature of Doc Credits
17 C Risks involved in the trading methods in international trade
18 D Bank guarantees
19 A The Trade Environment
20 A Issues associated with international trade products
21 A Procedures involved in Trade Contracts
23 C Trade terms and Incoterms
24 C Nature of financial, commercial and transport documents

Page 38 of 46
25 A Nature of Doc Credits
26 B Documentary collections in accordance with URC 522
28 B Short, medium and long term trade finance
34 C Procedures involved in Trade Contracts
39 D Risks involved in the trading methods in international trade
42 B Issues associated with international trade products

Page 39 of 46
46 A Documentary collections in accordance with URC 522
47 A Short, medium and long term trade finance
48 B Bank guarantees
49 C Issues associated with international trade products
55 C Documentary collections in accordance with URC 522
58 A Trade terms and Incoterms
59 D Nature of financial, commercial and transport documents

Page 40 of 46
64 B Nature of Doc Credits
65 B Documentary collections in accordance with URC 522
69 B The procedures involved in trade contracts
70 A Nature of financial, commercial and transport documents
71 C Risks involved in the trading methods in international trade
73 D The Trade Environment
75 B Issues associated with international trade products
77 C Nature of Doc Credits
78 C Short, medium and long term trade finance

Page 41 of 46
80 C Documentary collections in accordance with URC 522
81 B The Trade Environment
86 C Nature of Doc Credits
90 B Documentary collections in accordance with URC 522 Case Study 1 Syllabus

Ref
91 A Documentary collections in accordance with URC 522
93 A Short, medium and long term trade finance
94 A The nature of documentary credits
95 A Documentary collections in accordance with URC 522 Case Study 2 Syllabus

Ref

Page 42 of 46
98 C Short, medium and long term trade finance
分享收藏下存
打文 App，免此文
卵造影 ?「水滴」到治病

Page 43 of 46
北京水滴互保科技有..
看情
提供的告
VIP 育大包
立取
小免
精品程
[4月30日-二年【英（北京版）】UNIT TWO WHAT'S
FOR BREAKFAST(1
北京育和信…
[4月30日-二年【文（版）】文地一第一
]
北京育和信…
度塑料品UG分模培程
￥599 磊

Page 44 of 46
搜索文或
相象相象漫好就
化品那好家政
高夫gti2.0t 客皮沙款式片
甲服意品批
下原文，方便下文

Page 45 of 46
Page 46 of 46

CITF Specimen 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CITF Specimen 1

Uploaded by

Copyright:

Available Formats

Certificate in International Trade and Finance (CITF) Specimen Paper 2 Hours

This question paper consists of two sections:

question is worth one mark.

UCP600 applies throughout.

1. Answer ALL questions.

2. Read the instructions on both sides of the answer sheet carefully.

3. Do NOT open this exam paper until instructed to do so.

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

invalidate your entry.

A qualification assessed and awarded by the ifs School of Finance, a registered

1. The World Trade Organisation is primarily concerned with:

A international contract law.

B providing international trade finance.

C reduction of tariff barriers.

D regulating international payments.

2. Due to exchange control regulations, an importer is unable to obtain currency to

exporter. This is an example of:

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

C product liability risk.

D sovereign government risk.

A The contract is given orally.

B The contract is unsigned.

C There is no firm indication of acceptance from the offeree.

4. Which of the following statements does not describe Incoterms? They:

A are incorporated into international law.

B can be binding on buyer and seller.

C can be described as terms of delivery.

D can be described as terms of shipment.

5. Which of the following is a document of title?

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

B give assurance that the goods will be safe during shipment.

C guarantee payment in advance.

D provide a basis for exchanging documents for payment.

7. A collection is known to the exporter's bank as:

A a documentary sight bill.

D an outward bill for collection.

8. An importer wishes to have sufficient time to sell goods, before making

preferable to the importer?

A Documentary collection payable at sight.

B Documentary collection payable 60 days sight.

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

9. The least secure method of payment for an importer is:

10. Which of the following types of letter of credit is used as a guarantee of

11. Import barriers:

A ensure domestic industries are more efficient.

B ensure that officials controlling the system are not corrupt.

C make imported goods cheaper in the importing country.

D make imported goods expensive for domestic consumers.

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

above an agreed excess?

A Air waybill, marked 'freight paid'.

B Air waybill, marked 'freight unpaid'.

C Bill of lading marked 'freight paid'.

D Bill of lading marked 'freight payable at destination'.

14. Which of the following is a document supplied by an exporter as a quotation to

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

15. A letter of credit is issued on behalf of the:

16. A collection will be treated by the collecting bank as:

A a documentary sight bill.

D an inward bill for collection.

trade transactions? A risk:

https://wk.baidu.com/view/c68d067201f69e314332948b?pcf=2 6/12/20, 02:39

18. A standby letter of credit:

A can be cancelled at the sole request of the importer.