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Question
Which of the following is true of a letter of credit in international trade?A.No cash deposit or collateral is required from the importer.
B.The exporter pays the trusted third party (usually a bank) a fee for the service.
C.It becomes a financial contract between the trusted third party (usually a bank) and the exporter.
D.It is issued by the exporter at the request of the importer.
E.The creditworthiness of the importer is irrelevant when issuing a letter of credit.
Answer
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Related questions
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According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
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