vu bnk601 Lecture No.09 - Quiz No.1
vu bnk601 Banking Laws & Practices Quiz
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Question 1: Which of the following refers to “an instrument issued by a bank in which the bank furnishes its credit which is both good and well known, in place of the buyer’s credit, which may be good but is not so well known”?
Letter of credit
Open account
Documentary collection
Payment in advance
Question 2: A banking company can engage itself in which of the following businesses under section 7 of Banking Companies Ordinance, 1962?
Borrowing, raising, or taking up of money
The lending or advancing of money either upon or without security
The granting and issuing of letters of credit
All of the given options
Question 3: Which of the following parties are engaged in a letter of credit?
Advising banks
Confirming banks
Negotiating banks
All of the given options
Question 5: According to UCP 600, which of the following refers to the party on whose request the credit is issued?
Applicant
Issuer
Beneficiary
Issuing bank
Question 6: Relationship between Principal and Agent is known as which of the following?
Business relationship
Formal relationship
Agency relationship
Personal relationship
