Finastra Assessment Test Finastra Assessment Trade Finance 1

Question 1

Which ICC ruleset governs the issuance and operation of Letters of Credit in international trade?

Accepted Answer

UCP 600

Answer

UCP 600 (Uniform Customs and Practice for Documentary Credits) is the ICC standard that governs Letters of Credit, effective from 2007.

Question 2

In trade finance, what does 'usance' refer to in the context of a usance Letter of Credit?

Accepted Answer

The deferred payment period allowed before the buyer must pay

Answer

Usance refers to the agreed deferral period (e.g., 90 or 180 days) after which the buyer is required to make payment under a time or deferred payment LC.

Question 3

Finastra's primary trade finance platform, used by banks to manage Letters of Credit, guarantees, and collections, is known as:

Accepted Answer

Fusion Trade Innovation

Answer

Fusion Trade Innovation is Finastra's end-to-end trade finance platform covering documentary credits, bank guarantees, standby LCs, and supply chain finance.

Question 4

Under a Documentary Collection, which party instructs the remitting bank to release shipping documents to the buyer?

Accepted Answer

The exporter (principal)

Answer

In a documentary collection, the exporter (principal) instructs the remitting bank to forward documents and release them to the buyer upon payment or acceptance of a draft.

Question 5

Which Incoterm places the maximum responsibility on the seller, requiring them to deliver goods cleared for import at the buyer's named destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP (Delivered Duty Paid) places the highest obligation on the seller, who must deliver goods to the named destination including payment of import duties and taxes.

Finastra Assessment Test Practice Test

Finastra Assessment Test Practice Test

Finastra Assessment Test Finastra Assessment Trade Finance 1