DISANKE LIXI

Exercise3 remittance

I.Please fill the following blanks according to your knowledge.

1.There are four parties in a remittance, i.e._____,______,______,_______.

2.The remittances which are handled by the home remitting bank are called______, while

those are handles by foreign paying bank are called_____.

3.Remittance through a bank from one country to another may usually be made by one of

the following methods:_____,_____,______.

4.The mail transfer is a remittance, at the request of a remitter, effected by a _____, _____

sent by the remitting bank to the paying bank authorizing the latter to notify and pay a certain sum in money to the payee of the remittance.

5. A banker’s demand draft is also called _____. When drawer bank and drawee bank are

branches, D/D may be called_____

6.Payment after arrival of goods include two types of goods for sale, namely____, _____.

7.It has found a wide application in international commercial settlement in the form of

________________,___________________,______________________________.

8.based on the movement direction of the credit instruments and that of the funds flow , the

remittance can be classified into ____________ and _____________________.

II.True or false:

1.DD stands for Demand Draft.

2.M/T is a quic ker method of payment than a banker’s d emand draft.

3.Among T/T, M/T, D/D , T/T is the cheapest method of payment.

4. A further advantage of T/T over M/T is that there is no danger of instructions being

delayed or lost in the post.

5.In the case of M/T, the remitting bank issues a draft to its customer, and directs its

foreign branch or correspondent by mail to make the payment to the beneficiary.

6.SWIFT is the speediest form of payment

7.SWIFT stands for Society for Worldwide Interbank Financial Telecommunications.

8.The normal practice now is to send all mail transfers by airmail.

9.The operations of a telegraphic transfer is just the same as the mail transfer.

10.Collection and L/C belong to the reverse remittance.

III.Multiple choice

1.If the London’s bank makes a payment to a correspondent abroad,_______.

a.it will remit the sum abroad

b.the foreign bank’s vostro account will be credit

c.the London bank’s nostro account will be credited

d.either a or b

2.If Barclays instructions Citibank to pay a sum of US$100000 to Miland, its nostro

account should be______.

a. credited

b. debited

c. increased

d. decreased

3.When a customer asks its bank to make a telegraphic transfer to a beneficiary abroad, the

charges may________.

a.be paid by 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

4.I f an importer asks his bank to make a telegraphic transfer to an exporter abroad, he

should_______.

a.pay the home currency equivalent of the sum in foreign currency

b.pay the banks commission

c.get a permission from the authorities

d.pay the bank in foreign currency

5.SWIFT is________.

a.in the USA

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

6.Mail transfers are sent to the correspondent bank______, unless otherwise instructed by

clients.

a. by courier service

b. by ordinary mail

c. by airmail

d. by seamail

7.The various methods of settlement all involve the same book keeping. The only

difference is _______.

a.the method by which the overseas bank is advised about the transfer

b.the method by which the beneficiary is advised about the transfer

c.the speed

d.the beneficiary

https://www.360docs.net/doc/8d9410443.html,rge payments should be made by _____.

A. SWIFT

B. TT

C. D/D

D. A OR B

IV.Remitting bank: Industrial Commercial Bank of China, Tianjin.

Paying bank: Chemical Bank, New York

Date of cable:9 June

Test: 1534

Ref No. TT04---1548

Amount: USD 420,500.00

Value on: 9 June

Payee: FujiBank Ltd., Tokyo a/c UID 012547

WITH THEIR New York Branch

By CHIPS ABA 807

Message: Our L/C 14261 THEIR bp60014189

Remitter: Guang Da Industrial Corp. Tianjin

Cover: debit our USD account

Please write a able text to claim and reimburse proceeds by CHIPS.

FM:_______________________________

TO:__________________________________________

DATE: ___________________________________

TEST_____________________OUR REF_____________________

NO ANY CHARGES FOR US

PAY_________________________V ALUE________________________

TO_________________________BY_______________________ABA______________ FOR CREDIT OF ._____________________________UID

MESSAGE__________________________________________

ORDER______________________________________

COVER________________________________________________

V.draft No. 20060613

amount: HKD 32,150.00

PLACE AND DATE OF DRAFT: Tianjin, 8 May,2006

Paying bank: Bank of China, HongKong

Payee: the order of United Trading Company, HongKong

Pay against this draft to the debit of our account

Remitting bank: Bank of China, Tianjin

Remitter: China National Light Industrial Products Imp.&Exp. Corp., Tianjin Branch, Tianjin

Please draw a demand draft to make remittance by D/D.

VI.Please write “cover instruction” for each remittance in the following blanks.

1.The paying bank has maintained an USD account with the remitting bank. Suppose an

outward remittance in USD is made, how do you write “cover instruction”for this remittance?

2.The remitting bank has maintained a GBP account with the paying bank. Suppose an

outward remittance in GBP is made, how do you write cover instruction for this remittance?

3.Both remitting bank and paying bank have maintained USD accounts with XYZ Bank,

New York. Suppose an outward remittance in USD is made, how do you write cover instruction for this remittance?

4.Remitting bank and paying bank have not maintained account with each other, nor have

kept both the accounts with a third bank. Suppose an outward remittance is made, how do you write cover instruction for such remittance.