The document containing the guarantee of a bank of honour drafts drawn on it by an exporter is:
a. Letter of hypothecation b. Letter of credit c. Bill of lading d. Bill of exchange
Answers
Answer:
The document containing the guarantee of a bank of honour drafts drawn on it by an exporter is : Letter of credit
Among the given options option (b) Letter of credit is a correct answer.
Explanation:
Letter of credit documents are related to payment in export transactions.
Letter of credit is a document issued by importer's Bank to the foreign dealer undertaking that the bill drawn by the foreign dealer on the importer will be honoured on presentation to the extent of amount specified therein.
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A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as:
a. Shipping receipt b. Mate receipt c. Cargo receipt d. Charter receipt
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Which of the following document is prepared by the exporter and includes details of the cargo in terms of the shipper’s name, the number of packages, the shipping bill, port of destination and name of the vehicle carrying the cargo?
a. Shipping bill b. Packaging list c. Mate’s receipt d. Bill of exchange
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The document containing the guarantee of a bank of honour drafts drawn on it by an exporter is: Letter of credit.
it is prepared by the banker of the importer.
that means before sending the goods ,the exporter must be satisfied with the creditworthiness of the importer .In some cases ,only a bank reference may be considered sufficient. in this case a new buyers ,the deposit of full price in advance may be demanded by the exporter.