L6M10 practice question 1 of 25
Which document provides reassurance to all parties in an international transaction and serves as a promise issued by a bank on behalf of the importer to pay for goods and services?
Full set: 197 questionsCorrect Answer:
D. Documentary letter of credit (LC)
Explanation
A documentary letter of credit (LC) guarantees that the importer’s bank will pay the exporter upon fulfilling specified conditions. [P-135]
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