Keys to rcises andPractices1.doc

Exercises and PracticesChapter 1 IntroductionExercises:1. Put the following phrases into English。（1） 贸易壁垒 trade barrier（2） 进口关税 import tariff（3） 全球经济一体化 economic globalization（4） 资金转移 fund transfer（5） 有形贸易 tangible trade（6） 无形贸易 intangible trade（7） 国际惯例 international customs and practices（8） 全球金融同业通讯协会 SWIFT2. Put the following sentences into English.（1） 国际结算涉及有形贸易和无形贸易，外国投资，从其他国家借贷资金等。The international settlement involves tangible trades, intangible trades, foreign investments, funds borrowed from or lent to other countries and so on.（2） 许多银行注重发展国际结算和贸易融资的业务。Many banks have focused on their business of international settlement and trade finance.（3） 大多数国际间的支付来自于世界贸易。Most of the international payments originate from transactions in the world trade.（4） 一般来说，国际结算的方式分为三类：汇款，托收和信用证。Usually the international settlement is divided into three broad categories: remittance, collection and letter of credit.3. True or False(1) International payments and settlements are financial activities conducted in the domestic country. ( F )(2) Fund transfers are processed and settled through certain clearing systems. ( T )(3) Using the SWIFT network, banks can communicate with both customers and colleagues in a structured, secure, and timely manner. ( T )(4) SWIF can achieve same day transfer. ( T )(5) Risk management strategies should be taken into consideration when rating correspondent banks. ( T )4. Multiple Choice(1) SWIFT is B A. in the United States.B. A kind of communications belonging to TT system for interbanks fund transfer.C. An institution of the United Nations.D. A governmental organization.(2) SWIFT is an organization based in A A. Brussels B. New York C. London D. Hong Kong(3) A facility in fund arrangement for buyers or sellers is referred to A A. trade finance B. sales contract C. letter of credit D. bill of exchange(4) Fund transfers are processed and settled through C A. banks B. SWIFT C. clearing systems D. telecommunication systems(5) C Is the reason why international trade first began.A. Uneven distribution of resources B. Patterns of demand C. Economic benefits D. Comparative advantages(6) From the point of view of a Chinese bank, B is our banks account in the book of an overseas bank, denominated in foreign currency.A. a vostro account B. a nostro account C. a mirror account D. a record account(7) A refers to an exchange of services or assets between countries.A. Invisible trade B. Visible trade C. International trade D. Balance of trade(8) Each country has to earn B to pay for imports.A. money B. foreign exchange C. cash D. currencyChapter 2 InstrumentsExercises:1. Put the following into English(1) 大小写金额 amount in words and figures(2) 无条件的书面支付命令unconditional order of payment in writing(3) 远期汇票 time bill(4) 跟单汇票 documentary draft(5) 无条件的支付承诺 unconditional promise of payment(6) 流通工具 negotiable instrument(7) 由于这张信用卡的持卡人不讲信用，发卡银行将取消该卡。The issuing bank of this credit will cancel the holders card because of his poor credit standing.(8) 汇票和本票的定义有一些相似之处。There are some similarities between the definition of a bill of exchange and a promissory note.(9) 请开立一张以MR. Smith 为付款人的金额为2000美元的即期汇票。Please draw a sight draft on Mr. Smith for US dollars 2000.2. Fill in the blanks(1) The word “from” when used to determine a period of shipment include the date mentioned. Shipment date falls at 30days from 15 April, it falls on 14 May .(2) The word “from” when used to determine maturity date exclude the date mentioned. Maturity date falls at 30 days from 15 April, it falls on 15 May . (3) The word “after” when used to determine a period of shipment exclude the date mentioned. Shipment date falls at 30days from 15 April, it falls on 15 May .(4) The word “after” when used to determine maturity date exclude the date mentioned. Maturity date falls at 30 days from 15 April, it falls on 15 May .3. True or False(1) In check transaction, the drawer and the payer are the same person. ( F )(2) A check is a demand bank draft. ( F )(3) A draft is a conditional order in writing. ( F )(4) The person who draws the bill is called the drawer. ( T )(5) Any usance bills need to be accepted. ( T )(6) There is an acceptor in a promissory note. ( F )(7) There are only two parties in a promissory note. ( T )4. Multiple Choice(1) A check must be signed by ( A )A. the drawer B. the drawee C. the payer D. the payee(2) A term bill may be accepted by the ( B )A. drawer B. drawee C. holder D. endorser(3) ( A ) is drawn by the exporter and sent to the buyer.A. Draft B. Promissory Note C. I.O.U. D. Check(4) The ( C ) of a promissory note has prime liability while the other parties have secondary liability.A. endorser B. drawee C. maker D. acceptor(5) If a bill is a ( D ) bill, the documents will be handed over against payment of the bill.A. tenor B. sight C. clean D. documentaryPractice1. A draft contains the following items:Amount: GBP 32,000.00Drawer: China textiles Co., TianjinDrawee: Bank of Europe, LondonTenor: at 60 days after sightPayee: the order of ourselvesDate of issue: 12 May, 2010Drawn clause: Drawn under Bank of Europe, London L/C No. 15243 dated 5 April, 2010Please make a draft according to all the above items.Exchange for GBP32,000.00 Tianjin 12 May, 2010At 60 days after sight pay to the order of China textiles co., Tianjin the sum of Great Britain Pounds Thirty Two Thousand only.Drawn under Bank of Europe, London L/C No. 15243 dated 5 April, 2010To: Bank of Europe, London For: China Textiles Co., Tianjin Zhang Qingyu2. Please answer, fill in the blanks or make choice of the following questions.Exchange for GBP 5,000.00 London, 1 April, 2010 At 60 days after sight pay to the order of Bank of Australia the sum of pounds five thousand only.To The importing Co., For The Exporting Co.,Melbourne London signature(1) Refer to the above bill, the holder i.e. Bank of Australia has the right of transferring it to other person, or the right of presentment for acceptance and/ or payment to The Importing Co. Melbourne. If the latter refuses to pay, the holder has the right of recourse against The Exporting Co., London .(2) The payees London Office wishes to transfer the bill to Bank of New Zealand, Auckland, please make a restrictive endorsement.Pay to Bank of New Zealand, Auckland onlyFor Bank of Australia, Londonsignature(3) Please make a bland endorsement.For Bank of Australia, LondonSignature(4) Having made an endorsement in blank, the holder send the bill to Bank of New Zealand, Auckland who wishes to convert this blank endorsement into a special endorsement to themselves. Please make this special endorsement.Pay to the order of Bank of New Zealand, AucklandFor Bank of Australia, Londonsignature(5) If the condition is “on delivery of B/L No. 125”, please make a conditional endorsement.Pay to the order of Bank of New Zealand, AucklandOn delivery of B/L No. 125For Bank of Australia, Londonsignature(6) If payees London Office wishes to send the bill to their Melbourne Office for collection, please make an endorsement for collection.For collectionPay to the order of Bank of Australia, MelbourneFor Bank of Australia, Londonsignature(7) Refer to the above bill, a banker designated as payer is Bank of Melbourne, Melbourne. Date of acceptance is 10 April, 2010. Please make acceptance of such bill indicating its maturity. ACCEPTED 10 April, 1010To mature9 June,2010Payable at Bank of Melbourne, Melbourne For the Importing Co., Melbournesignature3. A promissory note for USD15,000.00 is made by Philips Importing Co., Hong Kong promising at 30 days after dte to pay to the order of Zhen-Hua Exporting Co., Beijing dated 20 Sep., 2009. Please make this note.Promissory NoteUSD 15,000.00 Hong Kong 20 Sept., 2009We promise to pay the order of Zhen-Hua Exporting Co., Beijing the sum of US Dollars Fifteen Thousand only. For Philips Importing Co., Hong Kong Li Xiaowan4. The differences between a bill and a note are as follows:BillNote(1)A bill is an unconditional order to pay.A note is an unconditional promise to pay. (2)A bill has three basic parties, namely drawer, drawee and payee.A note has two basic parties namely maker and payee.(3)Where payable after date, a bill is generally accepted.A note is never accepted.(3)An acceptance can be conditional.A promise to pay can never be conditional.(5)Before acceptance the drawer is primarily liable for payment, but after acceptance, the acceptor becomes primarily liable for payment.A maker is always the party liable primarily for payment. 5. A cheque No. 102358 for GBP5,000.00 is drawn by Samuel and Johnson Company on The National Westminster Bank Ltd., London payable to the order of British Trading Co. dated 31 Mar., 2009. Please make this cheque.National Westminster Bank Ltd., LondonCheque No. 102358 31 Mar., 2009Pay to the order of British Trading Co.GPB 5,000.00The sum of say Great Britain Pounds five thousand only. For Samuel and Johnson Company Mil Jibson6. The differences between a bill and a cheque are as follows:BillCheque(1)The drawee may be any person.The drawee must be a bank.(2)There are four kinds of tenor for the bills.The tenor is merely payable at sight.(3)After acceptance the acceptor is primarily liable for payment.The drawer is always primarily liable for payment.(4)A bill can be drawn in a set.A cheque cannot be drawn in a set.Chapter 3 RemittanceExercises:1. Put the following into English.(1) 汇款人帐户overseas branches and correspondent banks(2) SWIFT密押SWIFT authentication key(3) 授权签字authorized signature(4) 金融机构financial institution(5) 由于电信业的迅猛发展，大多数的付款业务都是通过电汇方式完成。With rapid telecommunication, most payment transactions are handled by telegraphic transfer.(6) 在付款业务中总是会出现一些差错。In the process of payment transfer, some mistakes may occur.(7) 电汇常常用于大金额和时间较紧的情况。T/T is often used when the remittance amout is large and the transfer of funds is subject to a time limit.2. True or False(1) Remittance refers to the transfer of funds from one party to another among different countries through banks.( T )3. Multiple Choice(1) The remitting bank checks the documents received ( D )A. as a service to its clients B. to avoid unnecessaryC. before sending them out D. all of above(2) Large payments should be made by ( D )A. TT B. SWIFT C. MT D. A or B(3) A ( D ) payment does not take as long as an MT payment.A. SWIFT B. TT C. DD D. A or B(4) Mail transfers are sent to the correspondent bank ( C ), unless other wise instructed by clients.A. by courier service B. by ordinary mail C. by airmail D. by seamailPractice:Draft No. 20090510Amount: HKD 32,000.00Place and date of draft: Tianjin, 8 May, 2009Payee: The order of United Trading Company, Hong Kong.Drawer bank: Remitting bank, Bank of China, TianjinDrawee bank: Paying bank, Bank of China, Hong KongPlease draw a demand draft to make remittance by D/D.BANK OF CHINA NO. This draft is valid for one year from the date of issue AMOUNT TO: , PAY TO THE SUM OF PAY AGAIGNST THIS DRAFT TO THE DEBIT OF OUR ACCOUNT BANK OF CHINA, Chapter 4 CollectionExercises:1. Put the following into English:(1) 运输单据shipping document(2) 托收指示collection instruction(3) 需要时的代理agent in case of need(4) 拒绝证书protest(5) 印花税stamp duty(6) 赊帐open account(7) 跟单托收适用于出口商既不想赊帐也不愿意用信用证的情况。Documentary collections are suitable in cases where the exporter is reluctant to supply the goods on an open account basis, but does not need the strong security provided by a documentary credit.(8) 跟单托收统一惯例是国际托收业务中通行的规则。The Uniform Rules for Collections (URC) form an internationally accepted code of practice covering documentary collections.(9) 单据应符合进口国家的法律和法规的要求。The documents should comply with the laws and regulations of the importing country.(10) 拒绝证书是法庭认可的拒付的法律依据，它要由公证机构来制作。Bill protesting is a legal evidence of dishonor acceptable to a court of law, and it will come into force by a notarization of notary office.2. True or False(1) A collection on the basis of commercial credit is usually processed through banks acting as the intermediary. ( T )(2) Banks have responsibility to examine the documents thoroughly. ( F )(3) Collecting bank handles the collection business according to the collection instruction. ( T )(4) In receipt of dishonor advice, the remitting bank must give appropriate instructions as to the further handling by the collecting bank. ( T )3. Multiple Choice(1) The instructions for collection are mainly ( D )A. those in the contract B. written on the Bill of ExchangeC. given by the importers D. given by the exporters(2) It will be more convenient if the collecting bank appointed by the seller ( B )A. is a large bankB. is the remitting banks correspondent in the place of the importerC. is in the exporters countryD. acts on the importers instructions(3) The operation of collection begins with ( B )A. the customer and the remitting bank B. the remitting bank and the collecting bankC. the presenting bank and the drawee D. the collecting bank and the presenting bank(4) Detailed instructions must be sent to the collecting bank ( B )A. in the application form B. in the collection orderC. in the documents D. both A and B(5) The collecting bank will make a protest only when ( C )A. the documents are rejected B. a case of need is nominatedC. specific instructions concerning protest are given D. protective measures in respect of the goods are taken(6) If it is stated as D/P, the documents can be released ( A ) A. against payment B. against acceptance C. in either way D. against acceptance pour aval（保兑）(7) （A ）is the bank to which the principal has entrusting the collection.A. The remitting bank B. The collecting bank C. The presenting bank D. Both A and B4. Answer the following questions(1) What is a collection in the international settlement?After the exporter has shipped the goods or rendered services to his customers abroad, he draws a bill of exchange n the latter with or without shipping documents attached thereto and then gives the draft to his bank together with his appropriate collection instructions.(2) What are the parties of a collection?They are exporters, importers, remitting banks and collecting banks.(3) What is a documentary collection?A documentary collection is an operation in which a bank collects payment on behalf of the seller (the principal) by delivering documents to the buyer.(4) How many types of documentary collection are there and what are they?There two types of documentary collection: documents against payment and documents against acceptance.Practice:1. Put the following application for collection into ChineseFinancial document: Draft: Drawer: ABC Co., Tianjin Drawee: XYZ Co., Los Angeles Date: 14 July, 2009 Tenor: At sight Amount: USD 1200.00Commercial documents: B/L in triplicate evidencing shipment of Mens shoes packed in 120 cases from Tianjin to Los Angeles per S.S. ChenfengInvoice in triplicateInsurance policy in duplicateCertificate of origin in duplicatePacking List in duplicateCollection instructions are give below:Deliver documents against paymentRemit the proceeds by cableCable advice of paymentCollection charges outside China from drawee, waive if refused by himAirmail advice of non-payment with reasonsProtest waivedWhen collected, please credit proceeds to principals account with remitting bank.(Do not write this sentence into Collection Instruction)2.Suppose you are a merchandiserwho is exporting a batch of Christmas present worth 500,000 US dollars to America, and the importer wants to pay by D/A. Please find a partner and simulate the scene of negotiation.3.As per practice 2, suppose you are a clerk of Bank of China, Changsha Branch, what suggestions will you provide for the exporter? Please find a partner to simulate this scene.Chapter 5 Letter of CreditExercises:1. Put the following phrases into English:(1) 商业用途commercial utility(2) 有条件的付款承诺conditional undertaking of payment(3) 契约安排contractual arrangement(4) 付款义务obligation of payment(5) 独立责任independent responsibility(6) 在此契约安排下的每一项条款都是独立的。Each item in contracts in this arrangement is independent of one another.(7) 进口商也要对远期汇票进行承兑并到期付款。An importer is also obliged to make an acceptance on the term bill of exchang