1) Pay to √ ; 2) I will be very pleased if you pay to × ; 3) Pay to × if the goods they supplied are complied with contract No. 123; 4) Pay to × providing the goods arrived at destination before 21, October;
5) Pay to × on condition that goods have been shipped on board before 18, November;
6) I beg you pay to × ;
7) Please pay to √ ;
8) Pay to √ ,D/P(D/A), Drawn against shipment of 20 bales of cotton from Guangzhou to Hong Kong for collection;
9) Pay to × out of the proceeds in our No. 456 account;
10) Pay to √ ,Drawn under L/C No.123 issued by XX bank, New York, dated 12, November, 2009;
11) Would you please pay to × .
6. Which of the following statements about sum are valid in a bill and give the reasons: 1) The sum of about one thousand USD.; × 2) The sum of circa one thousand USD.; × 3) The sum of one thousand USD or two thousand USD.; × 4) The sum of one thousand USD √
5) Pay to the order of the sum of one thousand US dollars plus interest; × 6) Pay to the order of the sum of one thousand US dollars by installments; × 7) Pay to the order of the sum of one thousand US dollars converted into sterling equivalent. ×
ChP 4.5
1. Please state the characteristics of T/T.(write down advantage and disadvantage of remittance by cable.)
1) Advantage of remittance by cable
? It is the fastest way to transfer funds.
? It involves bank-to-bank instructions with banks responsible for making payments, so it is
quite safe, especially when large amount is transferred. 2) Disadvantage of remittance by cable
? It is more expensive as compared with M/T or D/D, but if the amount transferred is large, the interest cost which should be otherwise incurred due to time delay can be saved. ? The beneficiary must await notification from the bank concerned.
2. Define D/P and D/A in English. P88-89
D/P: The collecting bank may release the documents only against full and immediate payment, insofar as national, federal or local laws or regulations do not prevent it.
D/A: The presenting bank may release the documents to the buyer against the buyer’s acceptance of draft, drawn payable 30~180 days after sight or due on a definite date. 3. Fill in the blanks to complete each sentence.
Principal, payer, remitting bank, and the drawee are the parties involved in the collection. Settlement on bank credit include letter of credit and bank guarantee . There are four parties concerned in the international remittance, they are the remitter , the remitting bank, the paying bank, and the payee.
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ChP 6.7.8
1. L/C finance includes finance to the export and finance to the import. 2.Please state the function of bill of lading. P209
? As a receipt of the goods from the shipping company to the exporter.
? As evidence of the contract for carriage between the exporter and the carrier. ? As a quasi negotiable document. ? As document of title.
3.Procedure for amendment of the credit. P172
? The seller requests that the buyer make an amendment to the credit. This can be made by a
telephone call, a fax, or by face-to-face negotiation. ? ? ?
If the buyer agrees, he orders the issuing bank to issue the amendment.
The issuing bank amends the credit and notifies the advising bank of the amendment. The advising bank notifies the seller of the amendment.
4. What are the parties involved in letter of credit? P111
Applicant/importer/the buyer申请人 Issuing/opening bank/the buyer’s bank开证行 Advising bank通知行（Notifying bank转递行） Beneficiary/exporter/the seller受益人 Confirming bank保兑行 Negotiating bank议付行 Paying bank/drawee bank付款行 Accepting bank承兑行 Reimbursing bank偿付行
KEY OF INTERNATIONAL SETTLEMENT
Chapter 1
1.Put the following phrases into English 贸易壁垒 trade barrier 进口关税 全球经济一体化 资金转移 有形贸易 无形贸易 国际惯例 全球金融同业通讯协会 import tariff economic globalization und transfer tangible trade intangible trade international customs and practices SWIFT 2.Put the following sentences into English
(1) 国际结算涉及有形贸易和无形贸易，外国投资，从其他国家借贷资金，等等。
The international settlement involves tangible trades, intangible trades, foreign investments,
funds borrowed from or lent to other countries and so on.
(2) 许多银行注重发展国际结算和贸易融资的业务。
Many banks have focused on their business of international settlement and trade finance. (3) 大多数国际间的支付来自于世界贸易。
Most of the international payments originate from transactions in the world trade.
(4) 一般来说，国际结算的方式分为三类：汇款、托收和信用证。
Usually the international settlement is divided into three broad categories: remittance, collection and letter of credit. 3. True or False
1) International payments and settlements are financial activities conducted in the domestic
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country. (F)
2) Fund transfers are processed and settled through certain clearing systems.(T)
3) Using the SWIFT network, banks can communicate with both customers and colleagues in a
structured, secure, and timely manner.(T) 4) SWIFT can achieve same day transfer.(T) 4.Multiple Choice 1) SWIFT is __B__ A. in the united states
B. a kind of communications belonging
to TT system for interbank’s fund transfer
C. an institution of the United Nations D. a governmental organization
2) SWIFT is an organization based in __A___ A. Brussels B. New York
C. London D. Hong Kong
3) A facility in fund arrangement for buyers
or sellers is referred to __A___ A. trade finance
B. sale contract C. letter of credit D. bill of exchange
4) Fund transfers are processed and settled
through __C___ A. banks
B. SWIFT
C. clearing system
D. telecommunication systems
5) __C__is the reason why international
trade first began.
A. Uneven distribution of resources B. Patterns of demand C. Economic benefits
D. Comparative advantages
5. Answer the following questions
1) Where are the medium of exchange originated from?
Tracing back the history of international settlement, the medium of exchange originated from coins to notes. 2) What will inevitably lead to under the international political, economic and cultural
exchanges? The international political, economic and cultural exchange inevitably leads to credits and debts owed by one country to another.
3) Why do banks focus on the development of the businesses of international settlement?
Banks focus more and more on the development of the businesses because it is a major resource of profits.
4) What will banks do to meet the higher and higher demand of the international market?
Banks need to develop innovative products and deliver the best services possible in whatever way they can. Chapter 2
1.Put the following phrases into English 资金转移 清算系统 银行竞争 可兑换货币 国际支付 fund transfer clearing system banking competition convertible currency international payment 2.Put the following sentences into English (1) 用于国际结算的货币是可兑换的货币。 13
Currencies used in the international settlement are convertible currencies. (2) 每一个通信和支付系统都有自己的使用规则。
Each communication and payment system has its own rules. (3) 有五种美元清算的方式。
There are five US dollar fund transfer payment methods. (4) 欧元是欧盟国家使用的货币。
Euro is the single currency of the European Union.
(5) 香港作为国际金融中心必须遵循国际惯例。
As an international financial center, Hong Kong must follow international payment practice. 3. True or False
1) CHIPS payments are irrevocable and subject to a same-day net settlement process.(T) 2) Book transfers are payment made between parties that maintain accounts at the different bank.(F)
3) In Japan, cash is not far more often used than checks for payment at the retail level.(F) 4) Not later than July 2002, the Euro will replace the national currencies in all public and
private transactions. 4.Multiple Choice
1) The following are the special problems
for international trade except for __C__ A. using foreign languages and foreign
currencies B. under foreign laws, customs and
regulations C. having risks
D. numerous cultural differences 2) All the parties to a collection are bound
by ___C___ A. UCP400 B. UCP500 C. UCR522
D. URC254
3) An additional risk borne by the seller
when granting a credit to the buyer is that the latter will not __D___ A. accept the bill
B. take up the documents C. take delivery
5. Answer the following questions
1) How will fund transfers be processed and settled?
Fund transfers are processed and settled through certain clearing systems. 2) What is FedWire?
FedWire is an electronic payment system operated by the U.S. Federal Reserve. It si used to make US dollar payments to banks and their customers throughout the United States. 3) When will the euro start to use?
D. make payment at maturity
4) To the exporter, the fastest and safest
method of settlement is __B__ A. letter of credit
B. advance payment C. collection D. banker’s draft
5) To the importer, the fastest and safest
method of settlement is __C_ A. letter of credit B. cash in advance C. open account D. banker’s draft
6) Which is the real international payment
system? __A__ A. TARGET B. FedWire C. CHAPS D. SWIFT
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From January 1,1999, Euro is the single currency of the European Union. 4) What is the strongest of SWIFT?
The strongest feature of SWIFT is message text standards. Chapter 3
1. Put the following phrases into English 总资产 缺乏经验 全球策略 专业服务 财务报表
2.Put the following sentences into English
(1) 两家银行建立代理行关系的原则是基于双方的互惠互利。
The overall principle to establish correspondent banking relationship between two banks is on the basis of mutual benefits.
(2) 一家银行对其所在国金融系统的重要性是对该银行进行评级的重要因素。
The importance of a bank to its country’s financial system is a major factor in the rating process.
(3) 穆迪和标准普尔在对银行进行评级时有许多相似之处。
Moody and Standard & Poor’s (“S&P”) share many similarities in rating banks. (4) 许多著名的大银行是根据一定的程序来向代理行提供信用额度。
The credit line for a correspondent is worked out according to certain procedures in many sizeable and well-know banks.
(5) 银行不仅可从贸易融资中获利，而且还可以介入金融活动之中。
Not only banks can gain from trade finance, they can also engage in those financial activities. 3.True or False
1) Risk management strategies should be taken into consideration when rating correspondent
banks.(T)
2) A world wide computer network for monitoring the line is maintained by many banks.(T) 3) A bank should introduce or modify those products in order to have those products to be marketed in its banking operation.(T)
4) Some correspondents will not extend credit facilities to the bank with nostro account and
offer a preferential account, so that conducting business will become more convenient and easier.(T) 4. Multiple Choice
1) From the point of view of a Chinese bank,
__B__ is our bank’s account in the book
of an overseas bank, denominated in foreign currency. A. a vostro account B. a nostro account
C. a mirrio account D. a record account
2) A bank gets to know its exact position of
total assets lack of expertise global strategy professional service financial statement funds by __A___ A. reflecting the credit balance B. examining the mirror account C. consulting a foreign bank D. checking the nostro account 3) Statements of balance of international payment don’t include __D__ A. current account B. capital account C. balancing account 15