A ________ represents an agreement by a bank to pay a foreign company a given amount if certain conditions are met.

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A letter of credit represents an agreement by a bank to pay a foreign company a given amount if certain conditions are met. It is often used in international trade as a way for exporters to assure payment from importers. A banker's acceptance is a type of financial instrument used for short-term financing, while a certificate of deposit is a type of savings account offered by banks. A callable option is a type of financial contract that gives the buyer the right to purchase or sell an asset at a specified price, but can be terminated early by the seller.

A ________ Represents an Agreement by a Bank to Pay