A revolving credit commitment gives the borrower assurances of the availability of funds o

A.revolving

B.non-draft

C.transferable

D.sight

unt will be automatically renewed on the 1st day of each succeeding calendar month, the total revolving credit amount does not exceed USD120,000.00 being the aggregate value of six months. The unused balance of each month is non - cumulative to the succeeding month.

(1)( ) The Revolving credit amount is USD120,000.00.

(2)( ) The Revolving credit amount is USD20,000.00.

Name a major advantage of a revolving L/C as compared with multiple L/Cs. ______.

A．It saves bank charges

B．It involves less charges

C．The applicants for the credit wouldn't pay any commission

D．The terms of the credit can be amended if necessary

nks in an incalculable liability.

(8)

A．The banks have an incalculable liability under the documentary credit revolving in value.

B．The banks prefer to issue the documentary credit revolving in value.

C．The buyer has less liability under the documentary credit revolving in value.

D．The banks are involved in less liability by issuing the documentary credit revolving in value.

nk to make advances to the beneficiary before presentation of the documents, such credit is called:

(1)( ) Red Clause credit.

(2)( ) Revolving credit.

(3)( ) Transferable credit.

amendments to the credit being required, such credit is called:

(1)( ) Transferable credit.

(2)( ) Back-to-Back credit.

(3)( ) Unconfirmed Irrevocable credit.

(4)( ) Revolving credit.

d valid for six months, which of the following statements is correct？

A. The face value of the credit is USD10,000.00.

B. The face value of the credit is USD60,000.00.

C. The amount (s) not utilised in one month may be carried over to the next.

D. The total undertaking of the Issuing Bank is USD60.000.00.

(1)( ) A and C only (2)( ) A and D only

(3)( ) B and C only (4)( ) B and D only

ceeds required by the actual supplier's goods. Which of the following documentary credits could the Issuing Bank issue to meet the beneficiary's needs？

(1)( ) Transferable

(2)( ) Back-to-Back

(3)( ) Standby

(4)( ) Revolving

SD 25,000.00 to be drawn each month. If only the first month's shipment is effected in full, what is the available amount in the fourth month？

(1)( ) USD 0.00.

(2)( ) USD 25,000.00.

(3)( ) USD 75,000.00.

(4)( ) USD 100,000.00.