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1. Assume that the documents presented under a sight LC are not discrepant. When will the negotiating bank pay the exporter after presentation of these documents?
A) within five working days
B) after obtaining confirmation from the LC issuing bank
C) immediately
D) within two working days
2. A back-dated loan is initiated and "Liquidate Back Valued Schedules" is set to Yes at the account level. Which statement is true? (Choose the best answer.)
A) Accounting entries related to an Accrual event and an ALIQ event for back-dated schedules are passed when the loan account is saved.
B) Accounting entries related to an Accrual event for back-dated schedules are passed when the account is saved. However, accounting entries for an ALIQ event for back-dated schedules are passed only during EO
C) Accounting entries related to an Accrual event for back-dated schedules are passed when the account is saved. However, accounting entries for an ALIQ event for back-dated schedules are passed when the loan account is authorized
D) Accounting entries related to an Accrual event and an ALIQ event for back-dated schedules are passed only during EOD
3. Where should you configure Spot Days for deals? (Choose the best answer.)
A) in the foreign exchange Products Level parameter
B) in the Bank Level parameter
C) in the Branch Level parameter
D) in the Currency Level parameter
4. A Letter of Credit with tenor as sight stipulates that the reimbursement of bills submitted under this Letter of Credit can be claimed immediately after negotiation of documents.
Which SWIFT message is generated by the system for claiming this reimbursement? (Choose the best answer)
A) MT740
B) MT742
C) MT752
D) MT747
5. An export bill under a Letter of Credit is negotiated for $75,000 USD on August 1 st. On August 3rd, a reimbursement claim (MT 742) is raised by the negotiating bank on the reimbursing bank for $75,000 USD. The reimbursing bank honors the claim. Assuming that the reimbursing bank uses Oracle FLEXCUBE, how is this transaction handled in the system? (Choose the best answer.)
A) The MT742 message can be viewed in the incoming browser of the messaging module of Oracle FLEXCUBE. A stand-alone MT202 message is created and sent from the outgoing browser of the messaging module.
B) The reimbursing bank books a bill contract under the Letter of Credit for capturing the details of MT742. On liquidation of this bill contract, a payment message is generated to honor the claim.
C) The reimbursing bank uses the Funds Transfer module for sending the MT202 message that honors this claim.
D) Oracle FLEXCUBE does not support handling of trade transactions from the point of view of a reimbursing bank.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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