1.

The confirming bank is the bank that,at the request of the issuing bank, provides its own undertaking a.In addition to that of the issuing bank b.When the Issuing bank does not pay c.only when Issuing bank requests confirming bank to pay

Ans: a

2.A performance standby supports

a.An obligation to perform other than to pay money b.An obligation to pay for losses arising from a default of the applicant in completion of the underlying transaction c.All of the above

options a and b C only A or B Ans: C

3. which of the below are types of Standby letters of credit

a.Bid bond b.Payment standby c.Insurance stand by d.Direct pay standby

Ans: All except b

4.Standby Lc from a legal view point is equal to the demand guarantee though there are important differences between the two

a.True

b.False

Ans: True

5.A Standby letter of credit a. Will be subject to ISP by default b. Will be subject to ISP by express reference to them c. Will not be subject to ISP but to UCP Ans: b

6.ISP rules do not define or otherwise provide for a.power or authority to issue a standby b.formal requirements for execution of standby c.defenses to honour based on fraud,abuse or similar matters d.worldwise uniformity in their interpretation and application e.practice and terminology of banks and businesses in day to day transactions

options 1.a,b and c 2.d and e 3.All of the above

Ans: 1

7.An issuers obligation under the standby cannot be amended or cancelled by the issuer except a. as provided in the standby b.As consented to by the person against whom the amendment or cancellation is asserted c.When the LC is issued as Revocable

options 1.a or b 2.C 3. All of the above

Ans: 1

8. Since standby is documentary, an issuers obligations depend on a.presentation of documents b.examination of required documents on their face options 1.either of the above 2.all of the above Ans: 2

9.An issuers obligations toward the beneficiary has a direct impact on the issuers rights and obligations toward the applicant a.True b.False

Ans: b

10.Demand is a.Request to honour a standby b.Document that makes such request

options 1. A or b 2. A and B 3. None of the above Ans: 1

11.When does Receipt occur a.An electronic record enters in a form capable of being processed by the information system designated in the standby b.Electronic record enters in any form and is as per LC requirements c.An issuer retrieves the electronic record sent to an information system other then that designated by the issuer d. An issuer receives the electronic record

options 1. 2. 3. 4. Ans:3 12.The following terms have no single accepted meaning and shall be disregarded a.Divisible b.Assignable c.Reinstate d.Transmissible options 1.All of the above 2.A and C 3. A and D 4.None of the above A and b C and D A and C All of the above

Ans: 3

13.Unless the context otherwise requires Issuer and confirmer are different and Issuer does not include a confirmer a. True b. False Ans: b

14.Unless a standby otherwise states being used in a rule means that a. Text of standby controls over the rule b.the rules controls the standby c.neither of the above

Ans: a

15.the phrase stated in the standby or like refers to a. Actual Text of standby b.Rules as incorporated

c.neither of the above Ans: a

16. the phrase provided in the standby or the like refers to a.Text of the standby b.Rules of the standby c. Text and rules d.Text or rules

Ans: c

17.An issuer acts in timely manner if a. it pays at sight b.accepts a draft c.undertakes a deferred payment obligation within the time permitted for examining the presentation and giving notice of dishonour

options 1. A and b 2. A,B and C 3. None of the above Ans: 2

18.Nomination does not obligate teh nominted person to act except too the extent that the nominated person undertakes to act a. True b.False

Ans: a

19.if a standby states that it is subject to Automatic amendment, a. the amendment is effective automatically without any further notification or consent beyond that expressly provided for in the standby b.the amendment becomes effective only upon further notification or consent as provide for in the LC Ans: a

20.An issuer using another person to advice a standby LC must advice amendments only to that person a. True b.False Ans: a

21.if the issuer cannot determine the standby under which the presentation is made, presentation is deemed to be made a.on the date on which the presentation is made b.on the date of identification Ans: b

22.A presentation is timely if a. ,Made any time after issuance b. Made anytime before expiry

options 1. A and b 2. A or b

Ans: 1

23.The statement Multiple drawings prohibited means that a. A single presentation can be made but it must be for full amount available b.A single presentation can be made but it can be less than the full amount available c.A single presentation can be made either for full value or less than the full value available options 1.A , b and c 2. A or C 3. B 4.C

Ans:3

24.An issuer is not required to notify the applicant of receipt of a presentation under the standby

a.True b.False Ans: a

25.if on the last business day for presentation the place of presentation stated in standby is closed and presentation is not made timely, then the last day for presentation is extended automatically to a.30th calendar day after the place of presentation re opens b.the day occurring 30 calendar days after the place of presentation re opens c.the day following the day when the place of presentation re opens Ans: b

26.if a standby does not specify any required document, a. A Documentary demand is not required b. A documentary demand is required c. None of the above

Ans: b

27.Duplicate originals or multiple originals requires presentation of a. All originals b. one original and other copies c. All copies

Ans: a

28.if a standby requires presentation fo draft or bill of exchange, that draft or bill of exchange a. needs to be in negotiable form b. need not be in negotiable form c. need not be in negotiable form unless standby so states Ans: c

29.What is the reasonable period for notice of dishounour 1.within 3 business days 2.Within 7 business days 3.Beyond 3 business days 4.beyond 7 business days

Ans: 1

30.the issuer may return documents to presenter if no response received from applicant 1. Within ten business days 2.within ten calendar days 3.within ten working days

Ans: 1

31.A standby is not transferable unless it so states a. True b.False

Ans: a

32.A standby must a. contain an expiry date b.permit the issuer to terminate the standby upon reasonable prior notice of payments

options 1. Both of the above 2. A or b Ans; 2 33.if a standby with more than one issuer does not state to whom presentation may be made, presentation may be made ot any issuer with binding effect on all issuers a. True b. False Ans: a