Exercises练习

Exercises练习

I.True or False

1.In international trade,the drawee of a bill of exchange is usually the exporter or the exporter’s bank.( )

2.A “To Order”bill of exchange is negotiable.( )

3.A “To Bearer”bill of exchange can be transferred by endorsement.( )

4.Theoretically,a time bill of exchange can be negotiated countless times before it is due.( )

5.Blank endorsement means no endorsement.( )

6.Bankers’ accepted bills of exchange are more popular than commercial accepted ones.( )

7.The date of a bill of exchange shall be prior to that of the contract.( )

8.A banker’s promissory note is usually payable at sight.( )

9.A crossed cheque is payable directly to the payee.( )

10.Uncertified cheques will be dishonored by the paying bank.( )

II.Multiple Choice Questions

1.The payee of a bill of exchange can be filled out in three ways.According to the provisions of the Law on Negotiable Instruments of China,a bill that is issued( )is invalid.

[A]payable to a named party only

[B]payable to order

[C]payable to bearer

[D]payable to a named party not negotiable

2.The title of a bill of exchange refers to( )of the bill.

[A]the drawer [B]the drawee

[C]the payee [D]the time span

3.Among bills of exchange,promissory notes and cheques,( )are used most for international transactions.

[A]bills of exchange [B]promissory notes

[C]cheques [D]traveler’s cheques

4.A bill of exchange is a document issued by( )ordering the drawee to pay unconditionally to the payee or bearer a fixed amount at sight or on a specified date.

[A]the acceptor [B]the payee

[C]the drawer [D]the drawee

5.Presentation is the act of the payee or holder of a bill of exchange to present it to( )for payment or acceptance.

[A]the drawee [B]the payee

[C]the exporter [D]the negotiating bank

6.Acceptance is the act of( )to accept the liability of payment for a time bill of exchange when it is due.

[A]the drawee [B]the payee

[C]the exporter [D]the negotiating bank

7.A promissory note is a document issued by( )promising to pay unconditionally at sight to the payee or bearer a fixed amount.

[A]The drawer himself/herself [B]the acceptor

[C]the drawee [D]the negotiating bank

8.When issuing a cheque,the drawer should keep a deposit with the paying bank for no less than the face value of the check,otherwise,this check is called( ).

[A]a bounced cheque [B]a crossed cheque

[C]a cash cheque [D]a transfer cheque

9.The drawee of a bill of exchange under a documentary collection should be( ).

[A]the presenting bank [B]the remitting bank

[C]the collecting bank [D]the importer

10.If A endorses a bill of exchange to B,and B to C,and the bill is due when it comes to C,but is dishonored by the drawee/payer.How could you cope with this if you were C?( )

[A]I can only initiate a recourse to B.

[B]I can only initiate a recourse to A.

[C]I can initiate a recourse to either A or B.

[D]I can initiate a recourse to neither A nor B.

III.Case Study

1.Discuss in a group of 4 or 5 how to draw a bill of exchange under D/P for a product you want to export and hand in the result of your discussion as group work.

2.In February of a certain year,ERC,a Chinese company,reached an export contract with IML,a French company,under payment terms of D/P 120 days after sight.Bank C of China sent the documents to the French collecting bank F,but did not receive payment even in August.Therefore,at the request of ERC,Bank C instructed Bank F to return the documents.However,it learned that F had released the documents to IML against acceptance and the importer would not pay under various excuses.Bank C believed that Bank F was liable for incorrectly releasing the documents,so it asked the latter to pay instead,but the French bank insisted that it had done nothing wrong.On October 28,Bank F informed Bank C that the importer had declared bankruptcy,with the court’s notice attached,which resulted in the exporter’s losing of both money and goods.What lesson can we learn from this case?

【注释】

[1]cheque:英式英语; check:美式英语