MINISTRY OF EDUCATION AND TRAINING MID TERM TEST NATIONAL ECONOMICS UNIVERSITY INTERNATIONAL PAY M E N T S Excellent Educational Program - Intake 64 Date: 23 October 2024 Time duration: 90 minutes SCHOOL OF BANKING AND FINANCE Department: International Finance Test Code: B 1. Open question (3 points): Analyze the similarities and differences between 2 modes of payments: D/P Collections and Documentary Credits. Which is more beneficial from the exporter’s perspective? Explain. 2. Multiple choice questions. Short explanations are required. (0.5 point/question) 2.1: Which type of L/C is preferred by the importer? a. At sight L/C receivedgoods lessrisky paywhenhaving b. Deferred Payment L/C c. Confirmed L/C 2.2. According to UCP 600, what kind of insurance document will be accepted by banks? a. Insurance policy c. Insurance certificate b. Cover notes d. All are accepted 2.3. Which of the following is true about Confirmed L/Cs: the king sageyouthe b. Confirmed L/Cs are cheaper than unconfirmed L/Csgenerally moreexpensivebe itinvolves an a. Confirmed L/Cs give the seller the least protection exporter c. Confirmed L/Cs give the seller the greatest protectionadditionalbank the longinning bank d. None of the above 2.4. With Documentary Collection of Payments, the exporter may present to the Remitting bank: a. Collection Instruction, Invoice, B/L, C/O, Bill of Exchange c. Both are incorrect b. Collection Instruction, Invoice, B/L, C/I, C/O d. Both are correct 2.5. Under trade term CIF, Incoterms 2010, who should arrange (and pay for) the loading of the goods onto the main means of transport at place of loading? a. The importer Cgroup Vishipgoincostinsurance b. The exporter 2.6 Which of the following is TRUE about Air Waybill: chink a. It is non-negotiable hung ngageaten c. The carrier Chap 3 AWB b. There must be “On board” on the bill's face c. It does evidence title to the goods It is not d. Full set of Air Waybill is required for presentation Chap3 Goods documents 2.7. Which of the following may not appear on an invoice: a. Parties involved in buying and selling b. Information about the origin of the goods CIO Invoice Content c. Port of loading, port of discharge d. Terms of payment and delivery of documents 2.8. Which of the following is true about Certificate of Origin (C/O): a. Goods with C/O are exempt from tax b. Countries issue C/O with non-standardized form and content c. C/O can't be issued by the seller (the beneficiary) d. C/O must be made according to standard form and must be signed 3. Correct the following Bill of Exchange (2 points) On: April 28, 2022, Vietnam PRODUCE & TRADING MATERIAL EQUIPMENT COMPANY LTD signed a contract for importing steel from Taiwan ASIAPRODEX INTERNATIONAL CO., LTD, with total value of 78,240 Euro, mode of payment: L/C. L/C No. 224101400011 was issued on May 6, 2022, deferred payment in 60 days. Issuing Bank: Bank for Industry and Commerce of Vietnam. Advising Bank: Yuan Shan Branch Bank, Taiwan. Invoice No. 14YS146902 was issued on May 12, 2022. On May 12, 2022, the following Bill of Exchange was issued. Check and correct it. BILL OF EXCHANGE May 12 2022 No.: 22YS146902 Date: May 21, 2022 For::78.420EUR At sixty six days of this FIRST Bill of Exchange (SECOND of the same tenor and date being unpaid) pay to the order of Yuan Shan Branch Bank the sum of Seventy eight thousands four hundreds and twenty euros Value received as per our invoice two jounty the Dated May 12, 2022 000 Irrevocable L/C No. 22410140011 dated 120522 06052022 To: Bank for Commerce of Vietnam ASIAPRODEX Industryand (Signature) ii iii In 4. Case study (1 point) A Vietnamese importing company is going to sign a contract to buy goods from a South Korean firm. The seller requires Cash in Advance as the mode of payment. Based on your understandings, analyze opportunities and risks as well, and give an advice to the Vietnamese company for making reasonable decision. Note: Open book exam. Mobile phone and Internet are not allowed. MINISTRY OF EDUCATION AND TRAINING MID TERM TEST NATIONAL ECONOMICS UNIVERSITY INTERNATIONAL PAY M E N T S Excellent Educational Program - Intake 64 Date: Time duration: 90 minutes SCHOOL OF BANKING AND FINANCE Department: International Finance Test Code: C 1. Open question (3 points): Analyze the similarities and differences between 2 modes of payments: D/A Collections and Documentary Credits. Which is more beneficial from the exporter`s perspective? Explain. 2. Multiple choice questions. Short explanations are required. (0.5 point/question) 2.1. Under trade term DAT, Incoterms 2010, who should customs-clear the goods for import within the buyer’s country: a. The importer deliveryat terminal b. The bank thingquan haiquan thirtusNK c. The exporter 2.2. Which of the following is true about Open Account: a. Equal risk for both the importer to the exporter b. Greatest risk for the importer c. The exporter totally reliant on the importer’s willingness to paydriavaonha tea t y d. Common in international trade 2.3.. Which of the followings may not appear on an invoice: a. Parties involved in buying and selling b. Information about the origin of the goods CIO c. Port of loading, port of discharge d. Terms of payment and delivery of documents 2.4. Which category of modes of payments is safest to an exporter? a. Collection of Payments b. Remittance c. Documentary Credit UC beogBankGuaranteeprovidesafetynet Reducecreditrisk Clearpaymentterm 2.5. What is true about Bill of Exchange: a. It is one type of commercial documents financial b. The drawer is the beneficiary c. Both a and b are correct d. None of the above 2.6. Which of the followings is true about Confirming Bank: NHsaytidying a. The bank that issues a credit at the request of the Applicant b. The bank that adds its confirmation to a credit upon the Issuing Bank’s authorization or request c. The bank that advises the credit at the request of the Beneficiary d. None 2.7. Under trade term CIF, Incoterms 2010, who should arrange (and pay for) the main carriage from the port of loading to the port of discharge? a. The seller b. The carrier c. The buyer 2.8. Which of the following is true about a CLEAN B/L: a. The B/L itself has the word CLEAN on its face b. The B/L itself has been endorsed c. There are no statements like “damaged creates” or “five cartons missing” on the face of the B/L Ecdlove he d. All of the above 3. Correct the following Bill of Exchange: On April 29, 2022, Vietnam MEKONG JSC signed a contract for importing electronic equipments from Japan FUZISHU, with total value of 23.7 million Japanese Yen, mode of payment: L/C. L/C No. 2022090210 was issued on May 06, 2022, deferred payment in 30 days Issuing Bank: Bank for Investment and Development of Vietnam (BIDV) Advising bank: Mitsubishi Bank Invoice No. 77MDP347189 was issued on May 12, 2022. On May 12, 2022, the following Bill of Exchange (No. 0947526EXP) was issued. Check and correct it. BILL OF EXCHANGE May122022 No.: 0947526 12 May 2022 For: 23,7ml JPY 7milJPY At thirty days after sight of this SECOND Bill of Exchange (FIRST of the same tenor and date being paid) pay to the order of MITSUBISHI BANK the sum of Twenty seven milion three hundred thousand Yen threeseven Value received as per our invoice No. 2022090210 Dated May 06, 2022. May12 Irrevocable L/C dated 12052219 520,771401347189 To: MEKONG JSC theirNo2022090210 FUZISHU BIDVI (Signature) EIP 4. Case study (1 point) A Vietnamese importing company is going to sign a contract to buy goods from a Cambodia firm. The seller requires FOB, Incoterms 2010, as the delivery term. Based on your understandings, analyze opportunities and risks as well, and give an advice to the Vietnamese company for making reasonable decision. Note: Open book exam. Mobile phone and Internet are not allowed. MINISTRY OF EDUCATION AND TRAINING MID TERM TEST NATIONAL ECONOMICS UNIVERSITY INTERNATIONAL PAY M E N T S Excellent Educational Program - Intake 64 Date: Time duration: 90 minutes SCHOOL OF BANKING AND FINANCE Department: International Finance Test Code: D 1. Open question (3 points): Analyze the similarities and differences between 2 terms of delivery under Incoterms 2010: FOB and DDP. Which is more advantageous from the exporter’s perspective? Explain. 2. Multiple choice questions. Short explanations are required. (0.5 point/question) 2.1. It is stated in the contract “Unit price: USD750.00/MT FAS Busan Port, Incoterms 2010”. Who will be responsible for arranging and paying for the main carriage from the port of loading to the port of discharge? a. The exporter b. The carrier c. The importer 2.2. Which of the followings is true about Confirmed L/Cs: a. Confirmed L/Cs give the seller the least protection b. Confirmed L/Cs are cheaper than unconfirmed L/Cs c. Confirmed L/Cs give the seller the greatest protection d. None of the above 2.3 Which of the following is true about Open Account: a. Equal risk for both the importer to the exporter b. Greatest risk for the importer c. The exporter totally reliant on the importer’s willingness to pay d: Common in international trade 2.4. . Under trade term FAS, who should arrange (and pay for) the main carriage from the port of loading to the port of discharge? a. The seller b. The carrier c. The buyer 2.5: Under Clean Collection, what kind of document is presented to the Remitting Bank: a. Invoice b. B/L c. Bill of Exchange d. C/O (Certificate of Origin) 2.6. What is true about Bill of Exchange: a. It is one type of commercial documents b. The drawer is the importer c. Both a and b are correct d. None of the above 2.7. Which of the following is true about Certificate of Origin (C/O): a. Goods with C/O are exempt from tax b. Countries issue C/O with non-standardized form and content c. C/O can't be issued by the seller (the beneficiary) d. C/O must be made according to standard form and must be signed 2.8 Which of the followings may not appear on an invoice: a. Parties involved in buying and selling b. Information about the origin of the goods c. Port of loading, port of dicharge d. Terms of payment and delivery of documents 3. Correct the following paragraph of L/C (2 points) :27 :40A :20 :40E :31D :50 :59 :32B :39B Sequence of total: 2 Form of Documentary Credit: REVOCABLE Irrevocable Documentary Credit Number:2022020910 Applicable Rules: UCP UCP 600 Date and Place of Expiry 222105 SLOVAK REPUBLIC Applicant TEXTILE IMPORTERS LTD., SLOVAK REPUBLIC Beneficiary INDUSTRIAL GOODS IMP. AND EXP. CO., LTD., VIETNAM Currency Code, Amount: 88.920 Sai i lechictsso 2 chisothapgainotagsan y Percentage credit amount tolerance: 05/05 :41A Available With .... By... NEGOTIATION :42C Drafts at.... 60 DAYS AFTER SIGHT FOR 100PCT TNVOICE VALUE :42P Drawee TEXTILE IMPORTERS LTD., SLOVAK REPUBLIC :43P Partial shipment: ALLOWED :44E Loading on Board/Dispatch/Taking in Charpe at/from... HAIPHONG PORT, VIETNAM :44C Latest Date of Shipment: 220429 4. Case study (1 point) A Vietnamese company is going to sign a contract to export perishable goods to a Chinese firm. The buyer requires Clean Collection as the mode of payment.. Based on your understandings, analyze oppotunies and risks as well, and give an advice to the Vietnamese company for making reasonable decision. Note: Open book exam. Mobile phone and Internet are not allowed. MINISTRY OF EDUCATION AND TRAINING MID TERM TEST NATIONAL ECONOMICS UNIVERSITY INTERNATIONAL PAY M E N T S Excellent Educational Program - Intake 64 Date: Time duration: 90 minutes SCHOOL OF BANKING AND FINANCE Department: International Finance Test Code: E 1. Open question (3 points): Analyze the similarities and differences between 2 modes of payments: D/A Collections and Documentary Credits Which is more beneficial from the exporter’s perspective? Explain. 2. Multiple choice questions. Short explanations are required. (0.5 point/question) 2.1: Which type of L/C is preferred by the importer? a. At sight L/C b. Deferred Payment L/C c. Confimed L/C 2.2. According to UCP 600, what kind of insurance document will be accepted by banks? a. Insurance policy c. Insurance certificate b. Cover notes d. All are accepted 2.3. Which of the followings is true about Confirmed L/Cs: a. Confirmed L/Cs give the seller the least protection b. Confirmed L/Cs are cheaper than unconfirmed L/Cs c. Confirmed L/Cs give the seller the greatest protection d. None of the above 2.4. With Documentary Collection of Payments, the exporier may present to the Remitting bank: a. Collection Instruction, Invoice, B/L, C/O, Bill of Exchange c. Both are incorrect b. Collection Instruction, Invoice, B/L, C/I, C/O d. Both are correct 2.5. Under trade term CIF, Incoterms 2010, who should arrange (and pay for) the loading of the goods onto the main means of transport at place of loading? a. The importer b. The exporter c. The carrier 2.6 Which of the following is TRUE about Air Waybill: a. It is non-negotiable b. There must be “On board” on the bill's face c. It does evidence title to the goods d. Full set of Air Waybill is required for presentation 2.7. Which of the followings may not appear on an invoice: a. Parties involved in buying and selling b. Information about the origin of the goods c. Port of loading, port of dicharge d. Terms of payment and delivery of documents 2.8. Which of the following is true about Certificate of Origin (C/O): a. Goods with C/O are exempt from tax b. Countries issue C/O with non-standardized form and content c. C/O can't be issued by the seller (the beneficiary) d. C/O must be made according to standard form and must be signed 3. Correct the following Bill of Exchange (2 points) On: April 28, 2022, Vietnam PRODUCE & TRADING MATERIAL EQUIPMENT COMPANY LTD signed a confract for importing steel from Taiwan ASIAPRODEX INTERNATIONAL CO., LTD, with total value of 78,240 Euro, mode of payment: L/C. L/C No. 224101400011 was issued on May 6, 2022, deferred payment in 60 days. Issuing Bank: Bank for Industry and Commerce of Vietnam. Advising Bank: Yuan Shan Branch Bank, Taiwan. Invoice No. 14YS146902 was issued on May 12, 2022. On May 12, 2022, the following Bill of Exchange was issued. Check and correct it. Date NgayissueHP 2 No ma Invoice HP 3 4 totalvalue 5 thierisoLoadoin Phainia Ching 6 SOLIC 9 soingaythagnam 10 Ben XK ngagissue ye 8IssuingBank BILL OF EXCHANGE 12 1 2 No.: 22YS146902 1445146902 Date: May 21, 2022 3 For::78.420EUR 78.240EUR At sixty six days of this FIRST Bill of Exchange (SECOND of the same tenor and date being unpaid) pay to the order of Yuan Shan Branch Bank the sum of g u Seventy eight thousands four hundreds and twenty euros Value received as per our invoice1445146902 two 5 forty Dated May 12, 2022 7 6 000 Irrevocable L/C No. 22410140011 dated 120522 06052022 8 To: Bank for Commerce of Vietnam ASIAPRODEX 10 (Signature) 4. Case study (1 point) A Vietnamese importing company is going to sign a contract to buy goods from a South Korean firm. The seller requires Cash in Advance as the mode of payment. Based on your understandings, analyze opportunities and risks as well, and give an advice to the Vietnamese company for making reasonable decision. Note: Open book exam. Mobile phone and Internet are not allowed.
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