1. The most often reason cited for using a transferable L/C is _____.

a. there is an intermediary who presents itself to the importer as the original exporter

b. the importer is short of working capital

c. there is an importer who would rather do business with an intermediary

d. the intermediary is a subsidiary of the original exporter

2. With a transferable letter of credit, the intermediary is the first beneficiary and the ______ is the second beneficiary.

a. opening bank

b. supplier or manufacturer

c. importer

d. advising bank

3. When the beneficiary of an L/C submits in writing to the opening bank a request to transfer all or part of the L/C's credit to a third party, it is known as a ___________ payment.

a. documentary

b. assignment of proceeds

c. irreconcilable

d. draft

4. A back to back L/C is most often used when both parties _______.

a. the exporter insists upon it

b. the exporter would like to hide the identify of the supplier

c. the importer is short of working capital

d. may not be able to verify each others credit history