Credit Instruments | Letter of Credit | L.C. |MCQs of Banking & Finance in English

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For the first time   , MCQs of Banking & Finance

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MCQs of Banking & Finance in English, Credit Instruments, Letter of Credit

Banking & Finance

Credit Instruments | Letter of Credit | L.C. | Banking & Finance is an interesting subject and MCQs are the base to pass the exam. Here are the MCQs of this chapter. 

Credit Instruments
3. Letter of Credit

 A letter of credit is:

An Order	A request
A Promise	All

 Bill of Exchange is a/ an

Request	Order
Promise	All

 An L.C. is issued by:

Exporter	Importer
Bank	All

 An L.C. issued with the

Bill of Exchange	Promissory Note
Bank Draft	Cheque

 Commercial Letter of Credit is used in

In foreign journey	In foreign trade
In foreign agency	all

 Bill of exchange may be

Bearer	Crossed
both	none

 This credit is automatically renewed.

Fixed credit	Transferable credit
Divisible credit	Revolving credit

 Travellers’ cheque is/an

Bank draft	Order cheque
Bearer cheque	all

 If a railway receipt is attached to LC, it is known as.

Documentary LC	Omnibus LC
Limited LC	Clean LC

 Credits granted to highly credible foreign persons, are known as

Documentary credit	Omnibus credit
Limited credit	Clean credit

LC not useful in countries other than specific ones, is known as.

Documentary LC	Omnibus LC
Limited LC	Clean LC

 A bill for a definite period is known as

Demand bill	Time bill
Order bill	Trade bill

 These are the parties to a LC

Buyer	Accepter
Seller	None

 This is the function of commercial banks

Issuance of LC	Discounting of bill
Receiving of cheque	All

 This is the function of central bank.

Issuance of LC	Discounting of bill
Both	None

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