JAIIB Exam 2025 – PPB Important Questions MCQs Quiz-31

29/03/2025

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JAIIB Exam 2025 PPB Important Questions MCQs Quiz-31

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB PPB MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB PPB quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

1. The letter of credit is opened on the request of ___________.
(a) Issuing bank
(b) Applicant
(c) Beneficiary
(d) Confirming bank

2. The LC issuing bank is also called as ____________.
(a) the importers bank or the opening bank
(b) the advising bank or the confirming bank
(c) the negotiating bank or the nominated bank
(d) the reimbursement bank

3. The advising bank’s responsibility is ________.
(a) to inform the issuing bank as to whom to issue the letter of credit
(b) to advise the buyer the despatch of documents by the seller
(c) to advise to the beneficiary, enabling the beneficiary to rely on its authenticity and genuineness
(d) None of the above

4. What are the advantages of LC to the buyer?
(a) No advance payment is to be made to the seller.
(b) The buyer can induce the seller to give credit in view of a guarantee from a banker.
(c) The buyer can put a condition for providing a certificate of the quality of goods from an independent body.
(d) All of the above

5. What are the advantages of LC to the seller?
(a) The seller is assured of receiving payment on his complying with the terms of the LC.
(b) On shipment of the goods, the seller can draw bills and get them negotiated with a bank in their country getting immediate payment
(c) Both the above
(d) None of the above

6. ________allows the bank to make advance payments to the exporter before the exporter presents any shipping documents. It allows for an advance to cover the costs of purchasing raw materials, processing, and packaging of goods.
(a) Red clause LC
(b) Green clause LC
(c) Yellow clause LC
(d) Brown clause LC

7. ________allows the bank to make advance payments to the exporter before the exporter presents any shipping documents. It allows for an advance to cover pre-shipment warehousing at the port of origin and insurance into account.
(a) Red clause LC
(b) Green clause LC
(c) Yellow clause LC
(d) Brown clause LC

8. Ordinary LCs are usually _______, i.e. immediate payment should be made of the bills drawn by the beneficiary
(a) Sight credit
(b) Usance credit
(c) Grace credit
(d) Revocable credit

9. _______ is a document to title to goods and holder of the same is entitled to get possession of the goods.
(a) Bill of Exchange
(b) Bill of Lading
(c) Transport document
(d) Insurance document

10. The International Chamber of Commerce (ICC) issues ________, a set of rules that govern the use of documentary credits in international trade.
(a) UCP 500
(b) UCP 550
(c) UCP 600
(d) UCP 650