InternationalSettlement2

1、International Settlement 2. Define the following terms.1. remittance2. mail transfer3. collection4. outward collectionn . Decide whether the following statements are true or false.1. The person paying the money is a payee. ( )2. The remitting bank under D/D is generally reluctant to stop payment on

2、a draft issued by itself for which will have an unfavorable effect on its credit-worthiness.( )3. In D/D, remitting bank draws a banker 'dsraft on paying bank ordering the latter to pay in the future the stated amount to the holder of the draft.( )4. A payment order, airmail advice or credit adv

3、ice 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. ( )5. The only means of authenticating a cable transfer is the authorized signatures.( )6. Mail tr

4、ansfer is often used when the client wants to transfer the funds to his beneficiary himself. ( )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 .( )8. T/T is faster and more expensive as compare

5、d with M/T or D/D.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. ( )10. Documents against acceptanceoffers the greater security to theexporter than documents against payment. ()11. When th

6、e colleting bank releases the documents to the buyer on the trust receipt, the legal title to the goods remains with the entruster.12. The remitting bank will consider to purchase the documentary bill from the seller only under D/A. ( )13. If the collecting bank is not located near the importer, it

7、would) ' s city. (send the documents to a presenting bank in the importer14. Under documents against acceptance, after acceptance, the buyer gains possession of the goods before the payment is made and is able to dispose of the goods. (15. Remittance serves as a compromise between collection and

8、 letter of credit in settlement of international transactions concluded by theimporter and the exporter. ()16. Collection bill purchased involves great risk for remitting banks, so they are seldom will to do so. ( )17. Under D/A, the seller issues a draft, the collecting bank presents the draft to t

9、he buyer. When the buyer sees it he must pay the money at once, then he can get the shipping documents. ( )18. All currencies can be used in international settlements. ( )in. Multi pie choicing.1. () are the obligations of the trustee under D/P,T/R .A. To arrange for the goods to be warehoused and i

10、nsured in thebuyer' s nameB. To pay all the proceeds of sale to the collecting bank or to holdthem on behalf of the bankC. Not to put the goods in pledge to other personsD. To return the goods or the proceeds to the collecting bank at anytime when requestedE. To settle claims of the collecting b

11、ank before liquidation in caseof the trustee' s bankruptcy2. () are the risks that the exporter assumes on documentarycollection basis.A. Non- acceptance of merchandiseB. Harm to the reputation due to dishonorC. Exchange restrictionsD. Non-payment of trade acceptanceE. Losing control over the me

12、rchandise before payment3. The procedure for D/P at sight comprise the following steps ( ).A. The collecting bank presents the documentary bill to the draweefor payment as fast as possibleB. The drawee accepts the billC. The drawee pays the face amount of the draft plus any chargesthe drawee is resp

13、onsible forD. The collecting bank releases the documents to the importeragainst paymentE. The drawee presents T/R to exchange the bill of lading).4.The parties to collection include (A. remitterB. remitting bankC. principalD. paying bankE. collecting bankG. draweeF. representative in case of need5.

14、()can be provided to bank for clean collection.A. ChecksB. Dividend warrants drawn on foreign bankC. promissory noteD. acceptancesE. certificates of deposit issued by foreign banks6. According to URC522, collections means the handling by banks,on instructions received, of documents, in order to (A.

15、obtain acceptance and/or, as the case may be, paymentB. deliver commercial documents against acceptance or, as the casemay be, against paymentC. deliver documents on other terms and conditionsD. deliver title documents against acceptance or, as the case may be,against paymentE. deliver certificates

16、of deposit to banks7. Control documents are lists of (A. specimen of authorized signaturesB. telegraphic test keysC. terms and conditionsD. SWIFT authentic keyE. business instructions8. D/A offers disadvantages to the seller such as ().A. the seller gains possession of the goods before the payment i

17、smadeB. the seller is able to dispose of the goods as he wishesC. the seller loses the control of the goodsD. the seller relies on the creditworthiness and integrity of buyer topay on due dateE. the seller can get bill purchased from the remitting bank9. General crossing bears across its face an add

18、ition of (), thismake the check payable only through any banker.A. only two parallel transverseB. the wordsand company ” between two parallel transverse linesC. the wordsnot negotiable b”etween two parallel transverselinesD. the wordsaccount payee ” between two parallel transverse linesE. the wordsB

19、ank of China ”between two parallel transverselines10. The characteristics of modern international payments andsettlements are( ).A. foreign banks act as the financial intermediaryB. foreign bank markets do play a very important roleC. credit instruments are used widelyD. from payments under simple p

20、rice terms to payments undermore complex price termsE. transfer of foreign exchange funds and convey of messages arevery much facilitatedIV. Analyze the principles and cases in international settlementsand give your opinion.1. URC522 Article 26 shows: On receipt of such advice, the remittingbank mus

21、t give appropriate insructions as to the further handling ofthe documents. If such instructions are not received by the presentingbank within 60 days after its advice of non-payment and/ornon-acceptance,the documents may be returned to the bank fromwhich the collection instruction was received witho

22、ut any furtherresponsibility on the part of the presenting bank.2. Collectig bankChina Merchants Bank-CMB;Remitting bank Kingcheng Banking Corporation Kowloon BaySub-branch;Principal Winplus Co LtdpayerChina National Textiles Imp and Exp CorpThe payer claimed that the principal agreed to reduce the

23、amountfrom USD850,000.00 to USD 800,000.00. How can the collect ingbank do?3. The p ayer made p ayme nt aga inst a set of correct docume nts undercollecti on, three days later, the p ayer claimed the goods received were“cott oni n”tead of “ silk st ipu lated in the con tract and asked thecollect ing bank to con tact with the seller. How can the collect ing bankdo?V P ractice1. An swer the questio ns agais nt t