Delios Trading is exporting for the first time to Japan and has contracted with Abe Imports in Tokyo for an initial order valued at $110,000.Delios Trading wants Abe Imports to secure a document from a Tokyo bank that would indicate that the bank would pay Delios Trading $110,000 upon presentation of specified documents by the exporter.What is the name of the document that Delios Trading is asking for?
A)bill of lading
B)time draft
C)letter of credit
D)sight draft
E)bill of exchange

Question

Quizplus · Accepted Answer

Delios Trading is asking for a letter of credit, which is a document from the importer's bank guaranteeing payment to the exporter upon presentation of specified documents that conform to the terms of the letter of credit.

Delios Trading Is Exporting for the First Time to Japan