LCBD

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Mastering Letter of Credit Basics

Test your knowledge of Letter of Credit (LC) with our engaging quiz! This quiz covers various aspects of LCs, including payment modes, the role of banks, and essential documents. Whether you’re a student, professional, or simply curious about international trade finance, this quiz is designed for you.

Multiple choice questions to challenge your understanding
Instant feedback on your answers
Perfect for anyone involved in trade or finance

10 Questions2 MinutesCreated by RunningTrade902

What are various modes of payment?

Advance Payment

Open Account

Bills for Collection

All of the above

In an LC which bank undertakes the guarantee to make the payment to third party?

Issuing Bank/Applicant Bank

Beneficiary Bank

None

LC is opened by?

Buyer

Seller

None of Abobe

In which type of LC, the buyer gets the agreed credit period time?

Sight LC

Usance LC

Client A approaches his bank XYZ to open LC in favor of Client B which is having account with bank PQR. Bank XYZ is currently not having lines with bank PQR. Can the LC be discounted in this case?

Yes

Client A approached its bank B to open LC in favor of Client C which is having account with Bank D. If client C wants to get its LC discounted, then which will be the advising bank in this case?

Bank B

Bank D

Under Sight LC, payment has to be made within

5 days

10 days

15 days

LCBD Sanctioned Limit will be valid for

6 months

12 months

No such Time Limit

LC protects interests of

Buyer

Sellet

Both

Mastering Letter of Credit Basics

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