D. visible account
4) __A__ refers to an exchange of services
or assets between countries. A. Invisible trade B. Visible trade
C. International trade D. Balance of trade
5.Answer the following questions
1) How will ratio of earning be divided?
5) Each country has to earn __B__ to pay
for imports. A. money
B. foreign exchange C. cash D. currency
Ratios of earning can be divided into ratio of capital return (Earning/ Total Capital, ROE) and ratio of asset return (Earning/ Total Capital, ROE) .
2) Why do banks develop the correspondent relationship with foreign banks?
For the purpose of rendering best service to the banks’ clients, it is essential for the banks to develop direct correspondent relationship with foreign banks and offer more diversified banking services, thereby playing an increasingly prominent role in promoting and regulating the growth of the national economy.
3) What do American banks and European banks usually do in their financial activities?
American banks are active in marketing their products and services in the field of fund clearing, Trade finance has always been the main subject of correspondent banking operations by many European banks for quite a long time. 4) What should the correspondent files be?
The correspondent files should be concise, but complete, and updated. Chapter 4
1. Put the following phrases into English 大小写金额 无条件的书面支付命令 远期汇票 跟单汇票 无条件的支付承诺 流通工具 amount in words and figures unconditional order of payment in writing term bill documentary draft unconditional promise of payment negotiable instrument 2.Put the following sentences into English
1) 由于这张信用卡的持卡人不讲信用，发卡银行将取消该卡。
The issuing bank of this credit will cancel the holders card because of his poor credit
standing.
2) 旅行支票易于在国外银行、旅店、商店、机场等兑现。
Traveler’s checks are easily encashabkes, hotels, ships and airports abroad.
3) 汇票和本票的定义有一些相似之处。
There are some similarities between the definition of a bill of exchange and a promissory
note.
4) Please draw a sight draft on Mr. Smith for US dollars 2000. 2. True or False
1) In check transaction, the drawer and the payer are the same person.(T) 2) A check is a demand bank draft.(T)
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3) A draft is a conditional order in writing.(F) 4) 5) 6) 7)
The person who draws the bill is called the drawer.(T) Any usance bills need to be accepted.(T) There is no acceptor in a promissory note.(T)
There are only two parties in a promissory note.(T)
8) Traveller’s checks are negotiable instruments.(T) 9) Traveller’s checks are fixed, round amounts.(T)
10) A line of credit is given by a bank according to the cardholder’s financial status.(T) 3. Multiple Choice 4) __A__is drawn by the exporter and sent 1) A check must be signed by __A__. A. the drawer B. the drawee C. the payer
D. the payee
2) When financing is without recourse, this
means that the bank has no recourse to
the __D__ if such drafts are dishonored. A. drewee B. payee C. payer D. drawer
3) A time bill may be accepted by the __B__ A. drawer B. drawee C. holder
D. endorser
5. Answer the following questions
1) Under which circumstances do banks usually ask for endorsement?
Bank usually ask for endorsement of check when the check in favour of joint payees is credited to a sole account and when the check is cashed over the counter. 2) What are the essentials of a draft?
The essentials of a draft are as follows: an unconditional order; in writing; signed by the person giving it; drawee; payment date; a sum certain in money; payee; date and place of issuance of a draft; bearing the words” exchange for”. 3) What is meant by a documentary bill?
A documentary bill refers to one that is accompanied by the relevant documents that are needed to complete the export transaction.
4) What is the important difference between the bill of exchange and the promissory note?
The important difference between the bill of exchange and the promissory note is that the promissory note is written and signed by the person who promises to make the payment (the buyer), and sent to the person who is owed the money (the exporter). A bill of exchange, in contrast, is drawn by the exporter and sent to the buyer (who “accepts” term bill).
to the buyer. A. Draft
B. Promissory note C. I.O.U D. Check
5) Taveller’s checks are in __D__ amounts. A. fixed
B. round
C. convenient
D. fixed, round and convenient 6) If a bill is a __D__ bill, the documents
will be handed over against payment of
the bill. A. tenor B. sight C. clean D. documentary
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5) How many parties are there in a promissory note? What are they? There are two parties in a promissory note, and they are maker and holder. Chapter 5
1.Put the following phrases into English 海外分支机构和代理行 汇款人账户 SWIFT密押 授权签字 金融机构 overseas branches and correspondent banks remitter’s account swift authentication key authorized signature financial institution 2.Put the following sentences into English
1) 由于电信业的迅猛发展，大多数的付款业务都是通过电汇方式完成。
With rapid telecommunication, most payment transactions are handled by telegraphic transfer.
2) 再付款业务中总是会出现一些差错。
In the process of payment transfer, some mistakes may occur.
3) 处理付款业务员中的典型错误是将头寸付款方式和链式付款方式的报文混淆。
It is a typical mistake to confuse the message types of the cover method with those of the serial method.
4) 在一些国家，通常用于国内付款的链式方式也用于跨境付款。
In some countries and for some currencies, the serial method --- typical for domestic payments --- is also used cross-border.
5) 电汇常常用于大写金额和时间较紧的情况。
T/T is often used when the remittance amount is large and the transfer of funds is subject to a time limit.
3. True or False
1) Remittance refers to the transfer of funds from one party to another among different
countries through banks.(T)
2) Mail transfer can be replaced in the time of telecommunication developed rapidly.(F) 3) Under the serial payment method, the instruction to credit a beneficiary account is dent
together with the instruction to debit sender’s account.(T) 4) Serial payment method cannot, however, delay the payment between different time
zones.(F) 4. Multiple Choice
1) The remitting bank checks
documents received __D__. A. as a service to its clients B. to avoid unnecessary C. before sending them out D. all of the above
2) Large payments should be made by
__D__ A. TT
B. SWIFT
the
C. MT D. A or B
3) A __D__ payment does not take as long
as an MT payment.
A. SWIFT B. TT
C. DD D. A or B
4) Mail transfers are sent to the
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correspondent bank __C__, unless other wise instructed by clients. A. by courier service B. by ordinary mail C. by airmail
D. by seamail
5) When a customer asks its bank to make a
telegraphic transfer to a beneficiary
5. Answer the following questions
1) How do you define the two types of fund transfer?
abroad, the charges may __A__ A. be paid either the remitter or the
remittee
B. be debited against the nostro
account C. be credited to the vostro account D. be paid by the remitting bank
Remittance can be defined as two typed of fund transfer: to a remit and to draw a draft. “To remit” refers to the funds to be transferred from remitter to a payee through banks, while “to draw a draft” means that the payee gets the funds from the remitter collected by banks. 2) What are the three main ways to make a remittance? Give us a brief description of the
three?
A mail transfer is to transfer funds by means of a payment order or a mail advice. A demand draft is often used when the customer wants to transfer the funds to his beneficiary by himself. Telegraphic transfer refers to remittance by SWIFT.
3) What are the two methods adopted in the payment transactions by T/T?
They are cover payment method and serial payment method.
4) what are the differences of the two methods used in the payment transaction?
In the cover method, the customer payment instruction is sent separately from the instruction to transfer the funds, In the serial method, the customer [payment and the fund transfer are sent together. 5) When will the interbank compensation be used and what are the related errors occurring in
the payment transactions?
In the process of payment transfer, some mistakes may occur, such as late payment., duplicate payment, under and over payment, wrong account at the right bank and so on, which may arise loss for a bank, The Rules of Interbank Compensation is therefore worked out to settle the dispute among banks. Chapter 6
1.Put the following phrases into English 运输单据 shipping document 托收指示 需要时的代理 拒绝证书 印花税 赊账 2.Put the following sentences into English 1) 跟单托收是用于出口商既不想用赊账也不愿意用信用证的情况。 Documentary collections are suitable in cases where the exporter is reluctant to supply the goods on an open account basis, but does not need the strong security provided by a collection instruction agent in case of need protest r stamp duty open account 19
documentary credit.
2) 《跟单托收统一惯例》是国际托收业务中通行的规则。
The Uniform Rules for Collections (URC) form an internationally accepted code of practice covering documentary collections.
3) 单据应符合进口国家的法律和法规的要求。
The type of documents should comply with the laws and regulations of the importing country.
4) 拒绝证书是法庭认可的拒付的法律依据，它要由公证机构来制作。
Bill protesting is legal evidence of dishonor acceptable to account of law, and it will come
into force by a notarization of notary office.
3. True or False
1) A collection on the basis of commercial credit is usually processed through banks acting as
the intermediary.(T) 2) Banks have responsibility to examine the documents thoroughly.(F)
3) Collecting bank handles the collection business according to the collection instruction.(T) 4) In receipt of dishonor advice, the remitting bank must give appropriate instructions as to the
further handling by the collecting bank.(T) 4.Multiple Choice A. in the application form 1) The instructions for collection are mainly
__D__ A. B. C. D.
those in the contract
written on the Bill of Exchange given by the importers given by the exporters
B. in the collection order C. in the documents
D. both A and B
5) The collecting bank will make a protest
only when __C__ A. the documents are rejected
B. a case of need is nominated
C. specific instructions concerning protest are given
D. protective measures in respect of
the goods are taken 6) If it is stated as D/P, the documents can
be released __A__ A. against payment B. against acceptance
C. in either way
D. against acceptance pour aval 7) __A__ is the bank to which the principal
has entrusting the collection, A. The remitting bank B. The collecting bank C. The presenting bank
D. Both A and B
8) __C__ must make his instructions to
____ clear in his collection order.
2) It will be more convenient if the
collecting bank appointed by the seller
__B__ A. is a large bank B. is the remitting
bank’s
correspondent in the place of the
importer
C. is in the exporter’s country
D. acts on the importer’s instructions 3) The operation of collection begins with
__B__ A. the customer and the remitting bank B. the remitting bank and the collecting
bank C. the presenting bank and the drawee D. the collecting bank and the presenting bank
4) Detailed instructions must be sent to the
collecting bank __B__
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