Which of the following is the most secure method of payment for an exporter?

Question

Quizplus · Accepted Answer

Letters of credit provide the exporter with the highest level of security as the payment is guaranteed by a bank. The bank acts as an intermediary between the importer and the exporter, ensuring that the importer pays for the goods only when the exporter has fulfilled all the requirements as specified in the letter of credit. This reduces the risk of non-payment and protects the exporter’s interests.

Which of the Following Is the Most Secure Method of Payment