Test 5 Q1 You are an importer Under Documentary Collection (D/P)payment method d

Question

Test 5 Q1 You are an importer Under Documentary Collection (D/P)payment method do you require security or cash documents ? a) Yes b) No with your bank before the bank will release the Q2 You are an importer. Under T/T payment method, do you require security or cash with your bank before the bank will make the payment? a) Yes b) No Q3 You are an importer. Under Documentary Collection (D/C)payment method do you require security or cash with your bank before the bank will release the documents? a) Yes b) No Q4 You are the importer Under Documentary Credit payment method, do you require security or cash with your bank before the bank will the payment? a) Yes b) No Q5 How should a cargo insurance document normally be ssued? a) In the same currency as the L/C b) In the same currency as the invoice e) In any major currency s All of the above e)None of the above 06 What are three levels of cargo insurance cover ? a)1.2,3 b)High, Medium, Low c)A,B.C d)All Risk e)Strikes ,Riots, Civil Commotion Clauses Q7 What is the usual level of cover in % terms that cargo insurance is issued for? a)100% b) I 05%

Explanation / Answer

1) yes

A documentary collection is a transaction whereby the exporter entrusts the collection of the payment for a sale to its bank which sends the documents that its buyer needs to the importer’s bank with instructions to release the documents to the buyer for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents.

2) yes

3) yes

4) no

5) in the same currency as the invoice.

because The cargo insurance document must indicate the amount of insurance coverage and be in the same currency as the credit.

6) A,B,C

Cargo Clause A is considered the widest insurance coverage and you should expect to pay the highest premium because you are asking for total coverage.

Cargo Clause B is considered a more restrictive coverage and you should expect to pay a moderate premium because perhaps you are only requesting the more valuable items in your cargo to be covered or only partial cargo coverage.

Cargo Clause C is considered the most restrictive coverage and you will probably pay the lowest premium but your cargo coverage will be much less.

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