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CDCs questions test before LIBF exam, Quizzes of Foreign Trade

Indian Institute of Foreign TradeForeign Trade

Sample questions and answers to do before LIBF exam

Typology: Quizzes

2025/2026

Uploaded on 03/25/2026

avin-saju
avin-saju 🇮🇳

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Part 1 单单单单
1. Among the kinds of documentary credits subject to UCP600, from which can the beneficiary get two banks
irrevocable undertaking to pay if complying documents are presented.
A. Irrevocable credit
B. Transferable credit
C. Confirmed credit
2. Which transport document of the following is not a goods title
单单 ?
A. Bill of lading
B. Multimodal transport documents “ ”单单单单单单单单单单单单 单单
C. Air waybill
3. Under an irrevocable credit, who must undertake primary liability 单单 for payment?
A. The applicant
B. The issuing bank
C. The nominated bank
4. With reference to ( ), the expression “transshipment 单 单 not allowed” is not a binding 单 单 term under credit
transaction.
A. Air transportation
B. Marine transportation
C. Insurance policy
5. Silent 单单 confirmation 单单 is an arrangement made between ( )
A. Beneficiary and advising bank
B. Issuing bank and advising bank
C. Beneficiary and applicant
6. A credit can be transferred ( )
A. From the first beneficiary to the second beneficiary
B. From the second beneficiary to the third beneficiary
C. From the applicant to the beneficiary
7. As for a freely negotiable credit, which bank acts as a transferring bank?
A. the advising bank
B. the specifically authorized bank
C. any negotiating bank
8. Of documentary credit and documentary collection in international trade, ( ) is better for the seller as it means a
bank’s irrevocable undertaking to pay.
A. The former
B. The latter
C. Neither
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Part 1 单单单单

  1. Among the kinds of documentary credits subject to UCP600, from which can the beneficiary get two banks irrevocable undertaking to pay if complying documents are presented. A. Irrevocable credit B. Transferable credit C. Confirmed credit
  2. Which transport document of the following is not a goods title 单单? A. Bill of lading B. Multimodal transport documents 单单单单单单单单单单单单 单单“ ” C. Air waybill
  3. Under an irrevocable credit, who must undertake primary liability 单单 for payment? A. The applicant B. The issuing bank C. The nominated bank
  4. With reference to ( ), the expression “transshipment 单 单 not allowed” is not a binding 单 单 term under credit transaction. A. Air transportation B. Marine transportation C. Insurance policy
  5. Silent 单单 confirmation 单单 is an arrangement made between ( ) A. Beneficiary and advising bank B. Issuing bank and advising bank C. Beneficiary and applicant
  6. A credit can be transferred ( ) A. From the first beneficiary to the second beneficiary B. From the second beneficiary to the third beneficiary C. From the applicant to the beneficiary
  7. As for a freely negotiable credit , which bank acts as a transferring bank? A. the advising bank B. the specifically authorized bank C. any negotiating bank
  8. Of documentary credit and documentary collection in international trade, ( ) is better for the seller as it means a bank’s irrevocable undertaking to pay. A. The former B. The latter C. Neither
  1. Which abbreviation 单单单 of the following is for uniform 单单 customs and practice for documentary credits? A. UCP B. URC C. URDG
  2. ( ) means “free on board a vessel” at the loading port, for which the seller does not supply insurance documents. A. FOB B. CFR C. FCA
  3. According to Incoterms 2000, which one of the below trade term is recommended 单单 when the credit requires an air waybill marked freight prepaid to the airport of destination? A. CFR B. CPT C. FCA
  4. If an exporter is willing to release the shipping documents directly to the buyer, but wishes to retain 单 单 some guarantee of payment should the buyer fail to pay on the due date, which of the following documentary credit best suits the exporter’s needs. A. Transferable B. Standby C. Revolving
  5. How many working days does an issuing bank have to as certain 单 单 whether the documents are in compliance under a credit subject to UCP600? A. 5 B. 6 C. 7
  6. Besides insurance company or its agent, the party who is also qualified to sign insurance document is ( ) A. (^) Underwriter 单单单 B. Broker 单单单 C. Proxy 单单
  7. Under CUP600 what is the m inimum insurance amount acceptable when the credit requires the invoice amount be CIF USD1000? A. USD B. USD C. USD
  1. Which of the following clauses or notations 单单 appearing on the face of the transport document would preclude 单单单 单单单单 it from being accepted? A. Oil drums 单 are leaking 单 B. Highly flammable 单单单 material or potentially explosive 单单 material C. Refrigerated 单单 seafood, may spoil 单单 during voyage 单单
  2. A beneficiary receives an irrevocable documentary credit for which USD22,500.00 may be drawn 单 单 during each month of the documentary credit’s one-year validity. The documentary credit also indicates that reinstatement 单单 is on a cumulative 单单单单单 basis. Full monthly drawings were made during the first, second, fourth, fifth and seventh months and there have been no other drawings. In the last month of the documentary credit’s validity, the beneficiary expects to make a final shipment. What is the maximum value available for this final drawing? A. USD112,500. B. USD135,000. C. USD157,500.
  3. A documentary credit states that shipment must be made on or about" 单 单 单 单 "/“ 单 单 单 单 单 ”27 june. Which of the following shipment dates would be acceptable?
  4. 20 June
  5. 27 June
  6. 02 July
  7. 03 July A. 1 and 2 only B. 1 and 4 only C. 2 and 3 only
  8. When an advising bank has accepted a time/usance 单单单单单单 draft under an advised documentary credit, they are responsible for effecting payment at maturity 单单 when ( )? A. they have received funds from the issuing bank B. they have received funds from the reimbursing bank C. the draft is presented by the beneficiary
  9. In accordance with UCP all the following statements relating to commercial invoices under a non-transferable documentary credit are correct EXCEPT the commercial invoices must () A. Be manually 单单 signed by the beneficiary B. Be made out it the name of the applicant C. Appear to have been issued by the named beneficiary and indicate the description of goods corresponding with the documentary credit.
  10. Which of the following Incoterms is correctly described? Incoterm Insurance required Transport document A. CFR Yes Freight Collect

B. FOB No Freight Paid C. FCA No Freight Collect

  1. Which party has the most responsibility 单单 to examine the terms and conditions of a documentary credit against the sales agreement? A. Applicant 单单单单单单单单单单单 B. Beneficiary C. Issuing bank
  2. In the case of 单 单 a non-cumulative 单 单 单 revolving documentary credit available for USD10,000.00 per month and valid for six months, which of the following statements is correct?
  3. The face value of the credit is USD10,000.
  4. The face value of the credit is USD 60,000.
  5. The amount(s) not utilized 单单 in one month may be carried over to the next
  6. The total undertaking of the issuing bank is USD60,000. A. 1 and 3 only B. 1 and 4 only C. 2,3 and 4 only

PART TWO 单单单单

  1. An L/C calls for a certificate of origin issued by the ICC, which of the following samples are acceptable? A. B. C. ICC CERTIFICATE OF ORIGIN

Xxxx

Signed by Smith

CERTIFICATE OF ORIGIN

XXXXXXXX

Signed by Smith Director of ICC

CERTIFICATE OF ORIGIN

XXXXXXXX

Signed by Smith

  1. Which of the following documents must be dated? A. Packing list B. Drafts C. Transport documents D. Insurance documents certificate of origin 单单单单单单单单单单单单单单单单单单单单单单单单
  1. We issued the L/C as follows: L/C expired: Dec 27, 2005 at beneficiary’s country Latest shipment date: Dec 06, 2005 Period of presentation: documents to be presented within 21 days after date of shipment but within the validity of credit, state documents acceptable. Which of the following is acceptable? A. B/L on board date: Dec 01, 2005, all documents presented on Dec 25, 2005 B. B/L on board date: Dec 01, 2005, all documents presented on Dec 31, 2005 C. B/L on board date: Dec 10, 2005, all documents presented on Dec 25, 2005 D. B/L on board date: Dec 01, 2005, all documents presented on Dec 15, 2005
  2. Which of the following documents are not considered as transport documents under UCP600? A. Delivery order and mate’s 单单单单 receipt B. Forwarder’s certificate of receipt and forwarder’s cargo receipt C. Air waybill and bill of lading D. Warehouse notes/receipt
  3. For the correction 单单 and alternation 单单 c ontained in the following documents, which need be authenticated 单单? a. Correction and alternation in commercial invoice visaed by XXX consulate b. Correction and alternation in packing list issued by the manufacturer c. Correction and alternation drafts issued by beneficiary 单单单单 d. Correction and alternation in certificate of origin issued by beneficiary
  4. If an actual date of dispatch 单单, though not required by the L/C subject to UCP600, to be shown on the air waybill , which date below is deemed 单单 to be the shipment date? A. Flight date: June 12, 2006 shown in the box for “carrier’s use only” B. Flight date: June 15, 2006 C. Actual date of dispatch: june 17, 2006 made by a stamp D. A or B
  5. Select the statements that correctly express the meaning of the UCP A. An L/C is independent of relative contract even if it is expressly 单单单单单单单 referred to by the L/C B. If the L/C opening application bears any ambiguity 单 单 单 单 in its instruction, the issuing bank should bear the risk to issue or amend the L/C C. If the applicant has accepted the discrepancies 单 单 单 , the issuing bank can still refuse the documents D. Once a beneficiary accepts an L/C he must execute 单单 it.
  1. Under an L/C indicating the goods description as “frozen beef 单单” and requiring invoice, B/L, packing list, certificate of origin, please determine 单单 the documents which are acceptable. A. Invoice indicating rhe goods description as “beef” B. B/L indicating the goods description as “beef” 单单单单单单单单单单单单单单单单单单单单单单单单单单单 C. B/L indicating the goods description as “goods shipped as per invoice presented” D. Certificate of origin indicating the goods description as “goods shipped as per invoice presented” 单单单单单单单单单单单单单单单单单单单单单单单单单单
  2. A credit available with ( ) is also available with ( ) A. a nominated bank, the issuing bank 单单单单单单单单单单单单单单单单单单单单单单 B. the issuing bank, a nominated bank C. advising bank, transferring bank D. confirming bank, the issuing bank 单单单单单单单单单单单单单单单单单单单单单单
  3. how would the issuing bank exercise control over the goods by air? A. insist upon holding the consignor 单单单’s copy of the air waybill B. insist 单单 upon holding original air waybill for the consignee 单单单 C. insist upon being named as consignee 单单单 of the goods on the air waybill D. insist upon full set of air waybills to be presented
  4. A documentary credit calls for presentation of an insurance certificate. Which of the following insurance documents would be acceptable for CIF shipment where the invoice value is USD75,000? A. insurance certificate for USD82, B. insurance policy for USD85, C. insurance declaration for USD75, D. insurance certificate for USD75,
  5. the letter of credit requires “three copies of inspection certificate issued by CCIC”. The documents presented as follows. Which is acceptable? A. in 3 originals B. in 3 copies C. in 1 original and 2 copies D. in 2 originals and 1 copy
  6. an issuing bank has issued a sight documentary credit to a beneficiary authorizing 单单 a nominated bank 单单单单单 to pay the beneficiary for all documentary presented in accordance with the documentary credit terms and conditions. Upon receipt of complying 单单 documents drawn 单单 under the documentary credit directly from the beneficiary, the issuing bank should 单单单单单单单单单单单单单单单单单 : A. examine the documents and pay the beneficiary B. verify 单单 the documents and pay the nominated bank C. return the documents to the beneficiary for presentation to the nominated bank D. remit 单单 the documents to the nominated bank for examination
  1. W an L/C (which allows transshipment 单单) calls for shipment from a UK airport. The AWB shows goods on a flight from Paris to London then transshipment to another flight from London to the ultimate 单单单 destination as specified in the L/C. would this be acceptable?
  2. R an L/C issued in favour of 单单 a beneficiary in Galle 单单, Srilanka 单单单单 calls for a certificate of origin issued by the “local chamber of commerce”, when presented it has been issued by the chamber of commerce in Colombo 单 单 单 , srilanka 单单单单. Would this be acceptable?
  3. R an L/C calls for ocean shipment from “western Europe to south korea”. In full utilization 单 单 of the L/C, the documents presented include 3 sets of ocean B/L all showing the same vessel/voyage but 3 different ports of loading (all within western europe) and 3 different ports of discharge (all in south korea). Does this constitute evidence of partial shipment?
  4. R an L/C subject to UCP600 specified that the L/C number must be quoted in all documents presented. The commercial invoice did not quote the L/C no. and issuing bank refused payment. Is the issuing bank correct in its refusal?
  5. W is the following invoice acceptable or not? Description of the goods in an L/C is: 1000 pieces of towels 单单 L/C amount: USD Invoice presented shows: Towels: 1000 pieces Total value: USD 1000 Samples of cap: 20 free of charge

Part Four 单单单单

  1. F Having transferred the full shipment/expiry dates and presentation period and made the L/C available in the transferee’s country, the first beneficiary cannot n ow substitute 单 单 documents after the L/C has expired or late presentation occurred.
  2. F part shipments/drawings are prohibited unless otherwise stated in the L/C. 单单单单单单单单单单单 UCP600.
  3. F unless otherwise stated in the L/C, transport documents must show the L/C beneficiary as shipper/ consignor 单单单.
  4. F an L/C calls for invoices in triplicate. When presented, they are identical computer-generated documents none of which is marked original. However, this is acceptable as the L/C only stated triplicate, not original and two copies.
  5. F an insurance policy is acceptable in lieu 单单 of an insurance certificate and vice versa.
  6. F according to article 13 of UCP600, if the credit stipulates that a claiming bank must supply a certificate of compliance with the terms and conditions of the credit when making reimbursement claim, the reimbursing bank can disregard 单单单 such a stipulation 单单.
  7. T a bill of lading with pre-printed wording to show that the goods have been loaded on board can simultaneously 单单 bear a dated on-board notation 单 单. In such a case the date of the on-board notation will be deemed 单 单 to be the date of shipment whether it is earlier or later than the issuance date or the two are the same.
  8. F if the bill of lading indicates a place of receipt or taking in charge different from the port of loading, the on board notation 单 单 must also include the port of loading stipulated in the credit and the name of the vessel on which the goods have been loaded, even if they have been loaded on the vessel named in the bill of lading. This provision 单单 does not apply when loading on board the vessel is indicated by pre-printed wording on the bill of lading.
  9. F terms such as “first class”, “well-known”, “independent”, “local”, “official”, “qualified”单单单单, “competent” 单单单单 and the like are ambiguous 单单单单 words in light of the UCP. If such terms are incorporated 单单单 in the credit, banks will accept the relative document (s) as presented, provided that it appears on its face to be in compliance with the other terms and conditions of the credit.

单 单 " 单 单 单 ""first class" 单 " 单 单 ""well known" 单 " 单 单 " "qualified" 单 " 单 单 ""independent" 单 " 单 单 ""official" 单 " 单 单 单 " competent" 单 " 单单 ""local" 单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单单

  1. F as for a charter party bill of lading , banks will not examine the charter party contract to which the bill of lading is subject. But if the credit requires beneficiary(ies) to present the contract along with other documents banks have to determine 单单 whether it is in compliance with the terms and conditions of the credit.
  2. F under a freely negotiable and transferable credit any bank except the issuing bank is a nominated bank. Now that the relative article of UCP600 sets a rule that only the nominated bank has the right to make the transfer, thereof any bank exclusive 单单 of the issuing bank can transfer such a credit unless otherwise stipulated.
  3. F without the agreement or authorization of the applicant, an issuing bank must issue a credit strictly 单单 as what the application says and cannot make any alteration 单 单 even if to supplement or develop the terms in a manner 单 单 necessary or desirable to permit the use of the credit.
  4. T if a signature and/or endorsement is required to be on a document consisting of more than one page, the signature is normally placed on the first or last page of the document, but unless the credit or the document itself indicates where a signature or endorsement is to appear, the signature or endorsement may appear anywhere on the document
  5. F if an L/C requires “invoice” or “one invoice” it will be understood to be a requirement for an original invoice. If an L/C requires “invoice in 1 copy” , it will be understood to be a requirement for a copy of an invoice.
  6. F an L/C called for one copy of insurance certificate, the original to be sent to the applicant by the beneficiary outside the L/C. the beneficiary presented one original in place of one copy. The original indicated on its face in column: NUMBER OF ORIGINAL: ONE. The presentation is valid.
  7. F description of goods: 100 tables, unit price: USD100 FOB shenzhen, total value: USD10000 partial shipment allowed description of goods in presented invoice: 100 tables, unit price: USD 100 FOB ShenZhen 10 tables first shipment total value: USD the description of goods in presented invoice is not acceptable.
  8. T the signature of the below bill of lading is compliance L/C requirement: ocean bill of lading BILL OF LADING BL NO,XXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXX

ZHANG XIN XIN

XYZ FREIGHT FORWARDER AS CARRIER

  1. T UCP600 is quite clear in stating that for the purpose of the articles in UCP, branches of a bank in a different country is considered to be sepearate bank. It follows that a branch of a bank in the same country is considered to be the same bank.
  2. F a credit requires the bill of lading to show on board notation which should be dated, stamped and countersigned 单 单. In this respect if the bill of lading is signed by the carrier, the notation should not be countersigned by the carrier.
  3. F a credit subject to UCP600 calls for “international consignment note- copy for shipper ”. An international consignment note is presented without the words or marking “copy for shipper”, neither does it show for whom the document has been prepared. The document without the words or making “copy for shipper” creates a discrepancy.