CSDG 2025 Batch 1 - Test Chapter 5 & 6 (15 Minutes)
1. If Bank H in country A issues a counter-guarantee in favour of a branch of the same bank in
country B, will the two branches be considered the same entity or separate entities under
URDG 758?
a. Same entity
b. Separate entity
c. Do not know
2. By advising a demand guarantee incorporating URDG 758, what does the advising party signify to the
beneficiary?
a. first, that it has satisfied itself as to the apparent authenticity of the guarantee; and
b. secondly, that the advice accurately reflects the terms and conditions of the guarantee as received
by the advising party.
c. Both are correct answer
3. If a guarantor issues an amendment to a demand guarantee incorporating URDG 758, what is the
effect of partial acceptance of an amendment by the beneficiary?
a. Partial acceptance of an amendment is not allowed.
b. It will be treated as a rejection of the amendment by the beneficiary. See URDG 758 sub-article 11
(e).
c. Both are correct answer
4. When issuing a demand guarantee incorporating URDG 758, which of the following four provisions
reflect the time at which the guarantee becomes effective and irrevocable?
a. The date on the document.
b. The time when the guarantee is sent.
c. The time when it leaves the control of the guarantor.
d. The time when it is received by the beneficiary
5. In a standby letter of credit incorporating ISP98, does the issuer have an express
obligation to reimburse a nominated confirmer who has honoured a complying presentation?
a.Yes
b.No.
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6. If you are drafting a demand guarantee which incorporates URDG 758, you will need to include the
following details in the guarantee, as recommended in URDG 758 article 8, except :
a. the name and address of the beneficiary;
b. the name and address of the guarantor
c. the name and address of the nominated bank
7. The applicant and the guarantor could be the same party.
a. True
b. False
8. When drafting a demand guarantee incorporating URDG 758, which of the following four provisions
would not include in the guarantee?
a. The amount or maximum amount of the guarantee and the currency in which it is payable.
b. The terms for demanding payment.
c. The time within which the guarantor must examine and reject or accept a demand.
d. The expiry date and/or the expiry event of the guarantee.
9. Under URDG 758 primary responsibility for payment of bank charges is on the :
a. Guarantor
b. Applicant
c. Instruction party
10. The guarantor could insist that its charges should be paid before it pays a complying demand.
a. True
b. False
11. If the guarantor pays a demand which it should not have paid, the instructing party may refuse to
reimburse it. Is this statement correct ?
a. Correct
b. Not correct
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publication in any form or by any means is strictly prohibited.
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12. According to Rule 2.02 of ISP98 two branches located in the same country treated as a separate
entity.
a. True
b. False
13. ISP98 contains no provision as to the applicable law and jurisdiction.
a. True
b. False
14. Who is the beneficiary of a counter-guarantee incorporating URDG 758?
a. The instructing party.
b. The applicant.
c. The guarantor.
d. The beneficiary of the guarantee.
15. Which of the following three instruments may be transferred
by operation of law?
a. A demand guarantee incorporating URDG 758.
b. A demand guarantee subject to no rules.
c. A standby letter of credit incorporating ISP98.
16. An ISP98 standby stated that it was “not available” until beneficiary pay EUR 100,000 to the applicant
on or before 1 April, at which point the standby became available for drawing.
a. The standby should not be entered on issuer’s book until transfer is made
b. The beneficiary must present a Receipt on or before 1 April
c. If the beneficiary fails to transfer funds to applicant, issuer may refuse the drawing.
d. The issuing bank must honour a complying drawing whether or not funds are transferred to the
applicant
17. A guarantor may instruct an advising party to advise the guarantee to the beneficiary where:
a. the guarantor is unknown to the beneficiary;
b. the guarantee is to be transmitted by SWIFT but the beneficiary is not a member of SWIFT;
and/or
c. the beneficiary requires from an acceptable advising party a warranty of the authenticity of the
guarantee.
d. a,b and c are correct
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publication in any form or by any means is strictly prohibited.
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18. In a guarantee which incorporates URDG 758, what is the difference between the applicant and the
instructing party? Can they be the same company?
a.Yes
b.No.
19. If a demand guarantee has multiple beneficiaries, which of the following provisions
may be included in the guarantee to prevent the guarantor being faced with multiple conflicting
demands exceeding the value of the guarantee? Select two answers as correct.
a. A short expiry date.
b. A provision designating one beneficiary as the agent for all
beneficiaries with the power to make demands and fulfil other
functions of the beneficiary.
c. A provision clearly determining the priority of competing demands, eg by reference to the time of
receipt.
d. b and c are correct
20. Under URDG 758 article 10 In particular, note that any subsequent amendment to the guarantee ,
a. Whenever possible, be advised through the same route as the original guarantee.
b. Must be advised through the same route as the original guarantee.
c. May be advised through the same route as the original guarantee.
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publication in any form or by any means is strictly prohibited.
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