Chapter 4 Inventory

Quiz:

1. Among all the Incoterms      imposes the minimum obligation and cost to the seller.

A. EXW                            

B. CIF                         

C. DAP                            

D. DDP

2. Under      term it is especially important for the seller to provide shipment notice to buyer.

A. FOB                             

B. CIF                           

C. FAS                              

D. CFR

3. If there is no specific provision, the draft under a letter of credit should draw on the       .

A. advising bank                     

B. issuing bank               

C. negotiating bank                   

D. applicant

4. If a bank other than the issuing bank guarantees the payment under a L/C, this L/C is       .

A. a confirmed credit

B. an irrevocable credit

C. non-transferable credit

D. a negotiable credit