Types of Payments/Assessment

From Wikiversity
Jump to: navigation, search
Gftp.svg Unit 4.6-Types of Payments 

Introduction | Types | Negotiation | Summary | Resources | Activities | Assessment

Assessment[edit]

1

Letters of credit promise the beneficiary that funds will always be transferred

immediately.
based on the agreed tenor of the l/c.
within 3 – 5 working days.
in a reasonable time frame.

2

When funds are transferred 60 days after sight without a draft, this is a(n) ___________ letter of credit.

acceptance
negotiation
deferred payment
sight

3

The different types of letters of credit allow the buyer and seller to be

risk-free.
restricted.
limited.
flexible.

4

If payment is to be made at negotiation, the funds are paid to the beneficiary by the

advising, issuing or confirming bank.
issuing bank only.
confirming bank only.
advising bank only.


Prev