2. 100% of the gross amount of the invoice. 3. 110% of the documentary credit amount. 4. 110% of the amount for which payment, acceptance or negotiation is requested under the credit. A 1 and 3 only. B 2 and 4 only. C 1, 2 and 4 only. D 1, 3 and 4 only. 24. A documentary credit for USD 150,000.00 calls for a full set of bills of lading and an insurance certificate to cover all risks. The bill of lading presented indicates an on board date of 15 December. Which of the following insurance documents are acceptable? 1. Policy for USD 185,000.00. 2. Certificate dated 17 December. 3. Declaration signed by a broker. 4. Subject to a franchise. A 1 and 2 only. B 1 and 4 only. C 2 and 3 only. D 3 and 4 only. 25. A documentary credit is issued for an amount of approximately GBP 40,000.00 payable with drafts drawn at 30 days from date of shipment. Documents are presented on 22 September XXXX with bills of lading dated 01 September xxxx and for value GBP 38,000.00. Which of the following drafts would be accepted? 1. 30 days from 01 September XXXX for approximately GBP 40,000.00. 2. 30 days from date of shipment – value GBP 38,000.00. 3. Due 01 October XXXX – value GBP 38,000.00. 4. 30 days from bill of lading date 01 September XXXX – value GBP 38,000.00. A 1 and 2 only. B 1 and 3 only. C 2 and 4 only. D 3 and 4 only.
CDCS sample test Page 8 of 11 The following 5 questions, 26 – 30, relate to the supporting documentation from In-basket 1.
CDCS sample test Page 9 of 11 26. Which of the following statements is correct? A Availability is consistent with the role of a confirming bank. B The confirmation commission is for the beneficiary's account. C The documentary credit amount is subject to a 10% tolerance. D An original certificate of origin must be presented. 27. Which of the following statements are correct? 1. The confirming bank is able to determine the maturity date. 2. Required documents do not conflict with the delivery terms. 3. Conditions of beneficiary's certificate require clarification. 4. Bill of lading is not the appropriate transport document. A 1 and 3 only. B 1 and 4 only. C 2 and 3 only. D 2 and 4 only. 28. Which of the following statements are correct? 1. Description of goods quantity is consistent with the documentary credit amount. 2. The issuing bank needs to send a mail confirmation of the documentary credit. 3. Drawee requirement is inconsistent with the role of a confirming bank. 4. The period for presentation of documents requires clarification. A 1 and 2 only. B 1 and 4 only. C 2 and 3 only. D 3 and 4 only. 29. Which of the following statements relating to the insurance requirements, as specified, are correct? 1. An insurance certificate would be acceptable in lieu of an insurance policy. 2. An insurance document stating that certain risks had been excluded may be acceptable. 3. The insurance document will need to show claims, if any, payable in Brazilian currency. 4. Insurance cover to a minimum of 110% of the invoice value would be acceptable.
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- Fall '14
- Legal documents, Bill of lading, CDCs, documentary credit