【正文】 7. Please answer the following questions.(1) What is the three parties are involved in the contractual arrangement concerning a Documentary Credit?(2) What are the two characteristics that the credit bears?(3) What are the issuing bank’s liabilities?(4) What does a confirmation constitute in the letter of credit?(5) What a threeparty contractual arrangement under the credit?(6) What principles does a credit follow?(7) What are the main roles of a credit ?(8) Specify the steps of the operation of a letter of credit.(9) What is an anticipatory credit?(10) What is a “soft clause” of a credit?Chapter 8: Guarantees and Standby Letter of Credit5. Please decide whether the following statements are true or false.(1) Most forms of such bank guarantees are intended to secure the buyer’s mitment to deliver the goods or to render a service in a correct fashion. ( )(2) It is usual for the tender guarantee to be released shortly after the issue of performance bond or guarantee, or to expire after a certain number of days. ( )(3) The traditional documentary letter of credit serves the purpose of securing payment of the contract price in the international trade of goods. ( )(4) The key feature of standby L/C is that they are usually listed on the issuer’s or beneficiary’s balance sheet. ( )6. Please choose the answers to each of the following questions.(1) A bond is a guarantee to ( )that ( ) will fulfill his contractual obligations. A. the buyer… that exporter B. the exporter… the buyer C. the guarantor… the buyer D. the exporter… the guarantor(2) A tender or bid bond is usually for ( )of the contract value. A. 2% B. 5% C. between 2% and 5% D. 6%(3) Advance payment bonds undertake to ( ) . A. make payments B. make payments if the goods or services are unsatisfactory C. refund any advance payments D. refund any advance payments if the goods or services are unsatisfactory(4) ( )are sometimes demanded by the ECGD to cover the potential recourse by the ECGD under buyer credit. A. Bid Bonds B. Retention Bonds C. Recourse Bonds D. Mainterance Bonds(5) ( ) is often unacceptable, particularly in the case of Middle East buyers. A. Conditional bonds B. Unconditional bonds C. Conditional bonds requiring documentary evidence D. Conditional bonds not requiring documentary evidence(6) ( ) guarantee the return to the buyer of these retention monies in the event of nonperformance of postpletion obligations by the exporter. A. Retention Bonds B. Recourse Bonds C. Refund Bonds D. Standby credit(7) ( ) subject to UCP 600. A. Bonds are B. Guarantees are C. Standby credits are D. Both standby credit and documentary credits are7. Please answer the following questions.(1) What is the characteristic of the guarantee? (2) Why the Standby credit letters have grown rapidly in recent years?(3) How many types of bank guarantee and what are they?(4) What obligation will a guarantor take?Chapter 9: Documents Handled in International Settlement5. Please decide whether the following statements are true or false.(1) The letter of credit should not contain a clause for “the latest date for negotiation”. If such a clause exists, the beneficiary should contact the issuing bank to amend it. ( )(2) Usually, a Credit will contain a clause for the latest date of presentation. If this does not exist, the expiry date is treated as the latest date of presentation. ( )(3) When a shipment date is not specified in the Credit, the extension of expiry date not implies for the same amendment of extension for the shipment as well. ( )(4) In general, if the date of presentation of documents differs from the expiry date of credit, the beneficiary should not present the documents prior to the earlier deadline. ( )(5) Drawee of invoices should be applicants and the address, if any, shall conform to the one in the credit. ( )(6) Description of the goods should be identical to the one in the credit. General terms of goods can not be used in other documents but with no contradiction to the credit. ( )(7) The Airline Company will hand goods to the consignee at destination airport without presentation by the original copy of the waybill after ensuring his identity. ( )6. Please choose the answers to each of the following questions.(1) The documents are presented within the expiry date and no later than ( ) days after the issuing date. A. 14 B. 21 C. 25 D. 31 (2) The expiry date refers to the date of ( ) of the documents. A. negotiation B. Payment C. Acceptance D. Presentation (3) If the credit specifies the expiry date to be Sep 30th and does not define the date of shipment, the date of shipment shall be deemed as ( ) A. Sep. 30th B. Sep. 29th C. Oct. 1st D. Oct. 4th (4) The value of the goods insured should be what it is required by the credit or at least ( ) of the CIF or CIP value of the goods. A. 100% B. 110% C. 120% D. 130% (5) If a credit calls for an insurance policy, banks will accept ( ). A. an insurance policy B. an insurance certificate C. A or B D. both A and B(6) The documents will not be delivered to the buyer until ( ). A. the goods have arrived B. the bill is paid or accepted C. the buyer has cleared the goods D. both A and B(7) The importance of distinction between financial documents and mercial documents lies in that it helps decide whether it is ( )