Quick Quiz

1.  The term CFR requires who to pay the costs and freight necessary to bring the goods to the named port of destination?

a)  the buyer

b)  the seller

c)  the banker

d)  the forwarder

2.  Which of the following terms means the seller has the obligation to pay costs and freight necessary to bring the goods to the named port of destination, in addition he has to procure marine insurance against the buyer’s risk of loss or damage of the goods during the carriage. 

a) FOB 

b) CIF

c) CFR

d) DDP

3.  EXW requires who to arrange export clearance and loading at the seller's premises, bearing cost and risk as well?

a)  the buyer

b)  the seller

c)  the banker

d)  the forwarder

4.  Under FOB, FCA, CFR and CPT, who will be responsible for arranging insurance?

a)  the buyer

b)  the seller

c)  the shipper

d)  the forwarder

5.  Under Irrevocable LC term, can the LC be canceled or withdrawn after it has been opened and notified to the exporter?

a)  can

b)  cannot

6.  When there is no description on the time limit for negotiation of the bills of exchange on the LC, and if they are brought to the bank more than 21 days later than the date of issuance of the BL, can the bank refuse to purchase the documents?

a)  can 

b)  cannot

7.  If the LC terms demand that the bill of exchange drawn by the exporter is the type which requires the importer to pay when the bill is presented to him by the reimbursing bank, this LC is called:

a)  sight LC

b)  acceptance LC

c)  cash LC

d)  confirmed LC

8.  Which one of the following would cost more to the buyer?

a)  DES - delivered ex ship

b)  DEQ - delivered ex quay

c)  DDU - delivered duty unpaid

d)  DDP - delivered duty paid

9.  Which one of the following types of B/L best described this situation:  A document is issued for receipt of cargo in a first port of unloading at Myanmar for transfer into another vessel in Singapore serving the final destination in Hamburg.

a)  cargo receipt

b)  direct BL

c)  through BL

d)  air waybill

10.  A forwarder works for and is responsible to carry out the instructions received from whom in a CFR or CIF contract?

a)  buyer

b)  seller

c)  consignee

d)  shipping line

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