In an international transaction involving a bank as a third party, the exporter ships the product after:
A) the bank receives materials from the importer.
B) receiving a cleared payment through bank.
C) the importer has paid the bank.
D) the bank promises to pay on the importer's behalf.

Question

Quizplus · Accepted Answer

When trading with bank as a third-party, the importer obtains bank's promise to pay on importer's behalf at first. Then, the bank promises exporter to pay on behalf of importer. The exporter ships the items after this.

In an International Transaction Involving a Bank as a Third