Question

T or F

() 7. Remittance is more favorable to the seller.

) 8. If the drawee is a bank, the draft must be a banker’s draft.

() 9. A bill of exchange with restrictive payee is not transferable.

) 10. Straight bills of lading involve high risks and are not often used in international trade.

Answer 1

7.true,They are the private savings of workers and families that are spent in the home country for food, clothing and other expenditures, and which drive the home economy.So when there is an increace in remittance it boosts consumption,so Remittance is more favorable to the seller.

8.True,A banker's draft is a cheque provided to a customer of a bank or acquired from a bank for remittance purposes, that is drawn by the bank, and drawn on another bank or payable through or at a bank. So even if the drawee is a bank the draft remains a,A banker's draft

9.true, Bills of exchange with such a clause of the drawer are called restrictive bills of exchange.The situation is more complicated when the bill of exchange is only passed over. This is the most informal and fastest way of transfer of rights relating to bills of exchange called also "blanket tradition" but  Ordinary or restrictive bills of exchange cannot be transferred in this way as they have the form of security on Bearer.

10.true,Straight bill of lading is a bill of lading issued to a named consignee which remains to be not negotiable,The original bill of lading is not required to be presented by the buyer inorder to get the goods. This may cause risks for the payment under which the letter of credit and cash against documents payment Issuing banks may be left vulnerable to various fraud risks especially under a letter of credit payments as they can lose the control of the goods .