Exercise3 remittance[1]

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.Telegraphic payments in USD should be made through three

channels:______,_____,___

5.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.

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

bank are branches, D/D may be called______.

7.The drawee banks of D/D are located in a clearing center of draft currency,

and it is called draft______.

8.Payment after arrival of goods include two types of goods for sale,

namely____, _____.

II.True or false:

1.DD stands for Demand Draft.

2.M/T is a quic ker method of payment than a banker’s demand 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. 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 aasks 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/de3137044.html,rge payments should be made by _____.

A. SWIFT

B. TT

C. D/D

D. A OR B IV.Remitting bank: Bank of Asia, Tianjin

Paying bank: Bank of Asia, Luxemburg

Date of cable:9 June

Test: 2563

Ref No. 208TT0219

Amount: USD 1,660.00

Payee: Marie Clauda Dumont, Luxemburg, account No.0-164/7259/550with Banque International du Luxemburg

Message: payroll

Remitter: Crystal Palace Hotel, Tianjin

Cover: debit our H.O. account

Please fill the following blanks in accordance with the above instructions to

dispatch a cable message of remittance by T/T.

FR:_______________________________

TO:__________________________________________

DATE:___________________________________

TEST_____________________OUR REF_____________________

NO ANY CHARGES FOR US

PAY___________________________________

TO_______________________________________

FOR CREDIING ACCOUNT NO._____________________________

OF_______________________________________

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

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.