Questions’ Bank for Trade Operations - Import

(TAO_SO)

1. Which one of the following is a financial document?

 Bill of Lading
 Commercial Invoice
 Bill of Exchange

2. An advising bank advises a letter of credit upon request of which bank?

 The negotiating bank

 The issuing bank
 The reimbursing bank

3. What is the key risk factor for a seller engaged in international trade?

 Non-receipt of goods
 Non-receipt of payment
 Market risk

4. The latest revision of ‘Guidelines for Foreign Exchange Transactions’ by Bangladesh Bank came into effect
from which year?

 2009
 2008
 2011

5. Which of the following party is a direct user of Incoterms?

 the buyers
 the banks
 the insurers

6. How do banks usually use Incoterms?

 Through incorporating them in letters of credit.

 Through incorporating them in cheque books.
 Through incorporating them in foreign demand drafts.

7. In which of the following payment method, the Issuing Bank has the maximum responsibility?

 Documentary Credit
 Open Account
 Documentary Collection

8. Which of the following method of payment is governed by URC 522?

 Advance payment
 Documentary collection
 Documentary credit

9. When a bank deals with a documentary credit it is said to deal…

 In documents only
 In goods only
 In insurance only

10. In a documentary credit cycle, which one of the following banks represents the beneficiary’s one?

 Issuing Bank
 Remitting Bank
 Negotiating Bank

11. Which of the following invoice is sent to the buyer in advance of the shipment of goods?

 Commercial Invoice
 Proforma Invoice
 Consular Invoice

12. In which year the latest version of UCP came into effect?

 2006
 2007
 2008

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

 Air waybill
 Commercial Invoice
 Bill of Lading

14. In a documentary collection, the drawee is usually the:

 Exporter
 Importer
 Remitting bank

15. Which one of the following is not an ICC publication?

 UCP 600
 CISG 900
 URC 522

16. In documentary credit operation, which one of the following banks hands over the transmitted copy of
original DC to the beneficiary?

 Issuing Bank
 Advising Bank
 Collecting Bank

17. Considering the perspective of Bangladesh, which of the following document is a regulatory document?

 Bill of Entry
 Bill of Exchange
 Insurance Policy

18. How many volumes are there in the latest version of ‘Guidelines for Foreign Exchange Transactions’ by
Bangladesh Bank?

 Three
 Two
 One
 19. Following are the players who usually play direct vital roles for continuing international trade except…

 Banks and financial institutions

 Insurers, Carriers and freight forwarders
 School Teachers

20. Which of the following Form should be used in case of all applications for payments against imports
(including imports from EPZs)?

 Bill of Entry
 IMP Form
 EXP Form

21. What is the correct elaboration of CCI&E?

 Chief Commissioner of Indenting and Export

 Chief Controller of Imports and Exports
 Chief Councilor of Import and Export

22. Which is the appropriate SWIFT FIN type for an Amendment of a Letter of Credit?

 FIN 700
 FIN 710
 FIN 707

23. The Letter of Credit Authorization Forms (LCAFs), available with the Authorized Dealers, are issued in sets
of 5 copies each.

 True
 False
 Do not know

24. Which Category of SWIFT Messages is related with the Letters of credit transactions?

 Category 1
 Category 4
 Category 7

25. Which of the following is a method of post-import financing by bank to importer?

 Commercial LC
 Negotiation of Export Bills
 Import Loans

26. Selected items as mentioned in the Import Policy Order (IPO) in force may be imported against registered
LCAFs without opening LC.

 True
 False
 Do not know

27. __________ is issued by the customs authorities at the entry point/at the port of disembarkation of goods in the
importer’s country which evidences authorization of the goods to enter into the destination country.

 Bill of Export
 Import Declaration Form
 Bill of Entry

28. When documents are presented under a documentary credit that do not conform to the terms and conditions of the
credit they are said to be…

 Non-negotiable
 Discrepant
 Unclean

29. The method of payment that is also a guarantee by the importer’s bank that payment will be made if certain
terms and conditions are met is known as…

 Documentary collection
 Documentary credit
 Bank guarantee

30. In a letter of credit transaction, the seller is known as…

 Applicant
 Importer
 Beneficiary

31. Which of the following is not a recognized role for a bank involved in a documentary credit transaction?

 Advising Bank
 Complying Bank
 Issuing Bank

32. A letter of credit is issued on request of the:

 Exporter
 Importer
 Insurer

33. Which statement is True?

 Goods from Israel or goods produced in that country shall not be importable – As par GFET
 Goods from Israel or goods produced in that country shall not be importable – As par IPO
 Goods from Israel or goods produced in that country shall not be importable – As par EPO

34. To import, Insurance Cover Note is required from:

 From Shadharan Bima corporation

 From Life Insurance Company
 From any non-life insurance company

35. Renewal of IRC for the incumbent financial year, without surcharge, is allowed up to:

 December 30 of the incumbent financial year

 September 30 of the incumbent financial year
 June 30 of the incumbent financial year

36. Allowed period for shipment after issuing LCAF to importer is:
 09 months
 18 months
 12 months

37. Import into Bangladesh is regulated by which authority?

 Ministry of Finance
 Ministry of Commerce
 Office of CCI&E

38. LCAF will remain valid for remittances subsequent to the month of issuance for import of capital
machinery:

 12 months
 9 months
 18 months

39. Remittance in excess of LCAF requires permission from:

 CCI&E
 Ministry of Commerce
 Bangladesh Bank

40. How many land port can be mentioned in an Import LC?

3
1
4

41. Credit report of beneficiary is a must for the LC under Proforma Invoice having value:

 USD10,000.00 and above

 USD 1,000.00 and above
 USD15,000.00 and above

42. Credit report of beneficiary is a must for the LC under Indent having value:

 USD20,000.00 and above

 USD 15,000.00 and above
 USD10,000.00 and above

43. ADs may allow payment against discrepant documents provided that:

 Applicant Submits Waiver of such Discrepancy (ies)

 Related Bill of Entry is submitted and matched with bill value
 Applicant provides Acceptance

44. Bill of Entry remains due until:

 120 days from the date of LC opening

 120 days from the date of payment
 120 days from the date of shipment

45. Which copies of LCAF have to be submitted to CCI&E?

 2nd & 4th copy
 3rd & 5th copy
 3rd & 4th copy

46. Import of industrial raw materials is allowed up to:

 360 days
 90 days
 180 days

47. Which of the following method of payment settlement under LC requires a draft?

 By acceptance
 By deferred payment
 By sight payment

48. Which chapter of GFET, 2009, deals with the policies, procedures, instructions and directives relating to
import?

 Chapter-8, Volume-1
 Chapter-7, Volume-1
 Chapter-8, Volume-2

49. For which one of the following functions SWIFT messages are not being used?

 Treasury
 Transportation
 Trade

50. The document, similar to the B/L, used in air cargo operations is called a:

a. Air B/L
b. Packing list
c. Airwaybill

51. if LC is issued subject to UCP & some of its terms conflict with National Law, which one of the following
statement is correct?

a)National Law should prevail

b)UCP should prevail
c) URC should prevail

52. what is the role of an advising bank:

a)Make payment
b)Advise the LC
d)Add its confirmation to a Credit

53. LC issued at the request of:

b)Advising Bank
c)Buyer
d)Seller

54. LC issued in favour of:

a)Beneficiary
b)Applicant
d)Advising Bank

55. which one of the following documents are transport documents

a)Truck Receipt
B) Forwarder’s cargo receipt
c) Delivery order

56. which of the following is true

a) FIN 103:single customer transfer

b) FIN 707:amendment of documentary credit
d) all of the above

57. Air way Bill is a documents of title:

a)true
b)False
c) Do not know

58. Which of the following is a party to a letter of credit?

a)issuing Bank
c)nominated bank
d)all of the above

59. Packing list need to be signed:

a)true
b)False
c) Do not Know

60. which one of the following statement is true

a)Pro forma invoice is sent to the buyer prior to shipment

b)commercial invoice is used to open a L/C
d)none of the above

61. Which one of the following is a feature of Bill of Lading

a)evidence of receipt of cargo

c)documents of title of cargo
d)all of the above

62. import of goods into Bangladesh is regulated by:

a)Finance ministry
b) Ministry of commerce
c) Home ministry

63. Which one of the following is a commercial document?

a)Commercial Invoice
c)Draft
d)Insurance certificate

64. A confirming bank confirm a letter of credit at the request of:

a) beneficiary
b) issuing bank
d) applicant

65. How many copies are there in a LCAF Form

a)5 copies
b)4 copies
c)3 copies

66. Goods can’t be imported without opening LC as per import policy:

a)true
b)False
c) Do not know

67. importer must submit authenticated bill of entry within:

a) 04 months from the date of shipment

b) 04 months from the date of remittance
c) 04 months from the date of LC issuance

68. Which one of the following statements is true?

a)LC must be irrevocable
b)Only one land port is to be mentioned in the lc
d)all of the above

69. H.S. CODE MEANS :

A. CLASSIDICATION OF IMP FORM

B. CLASSIFICATION OF GOODS
C. CLASSIFICATION OF EXP FORM

70. IMPORT LC CAN BE OPENED ON FOB BASIS:

B. FALSE
A. TRUE
c. Do not know

71. BILL OF LADING ISSUED BY :

A. SHIPPING COMPANY
B. HOME MINISTRY
C. BANGLADESH BANK

72. BANKS ARE NOT INVOLVED IN THE SALES CONTRACT

A. TRUE
B. FALSE
c. Do not know

73. FAS MEANS :

A. FREE ALONGSIDE SHIP

B. FREE BESIDE SHIP
C. FREE BEHIND SHIP

74. IN DOCUMENTARY COLLECTION BUYER MEANS :

A. REMITTING BANK
B. DEBTOR
C. COLLECTING BANK

75. BILL OF EXCHANGE IS A FINANCIAL DOCUMENT :

A. TRUE
B. FALSE
c. Do not know

76. WHICH OF THE FOLLOWING IS A TRANSPORT DOCUMENT :

A. INVOICE
B. BILL OF LADING
C. CERTIFICATE OF ORIGIN

77. WHICH OF THE FOLLWING IS A TRADE PRODUCT

A. CONSUMER LOAN
B. LETTER OF CREDIT
C. CREDIT CARD

78. AS PER UCP 600, NUMBR OF ARTICLES ARE :

A. 29
B. 39
C. 49

79. ISBP STAND FOR :

A. INTERNATIONAL STANDARD BANKING PRACTICE

B. IMPORT POLICY ORDER
C. EXPORT POLICY ORDER

80. IMPORT POLICY ORDER 2015-2018 SHALL REMAIN IN FORCE UP TO :

A. 30 JUNE, 2018
B. 31 DECEMBER,2018
C. 01 JANUANRY, 2018
81. TIME LIMIT FOR OPENNING LC IS :

 180 DAYS FROM LCAF REGISTRATION

 160 DAYS FROM LCAF REGISTRATION
 140 DAYS FROM LCAF REGISTRATION

82. Direct guarantee involves:

3 party
4 party
2 party

83. URDG stands for:

 Uniform Rules for Demand Guarantees

 Uniform Rules for Documentary Guarantees
 Universal Rules for Documentary Guarantees

84. Latest publication no. of URDG is:

 758
 785
 585

85. URDG 758 are

 A set of laws
 A set of rules
 Both