Consider a bank that acknowledges that it will make payment on behalf of a computer importer after the bank receives documents showing that the computers have been shipped to the importer. This reflects:

Question

​Consider a bank that acknowledges that it will make payment on behalf of a computer importer after the bank receives documents showing that the computers have been shipped to the importer. This reflects:

Quizplus · Accepted Answer

The scenario described is indicative of a letter of credit, which is a common method of payment used in international trade. The bank agrees to make payment on behalf of the importer once specified conditions, such as the presentation of proper shipping documents, have been met. This allows both parties to manage the risks associated with international transactions. Accounts receivable financing, forfaiting, and factoring all involve different methods of financing, and are not relevant to the scenario described.

​Consider a Bank That Acknowledges That It Will Make Payment

Consider a Bank That Acknowledges That It Will Make Payment