Standby letters of credit perform an insurance function similar to that of commercial and trade letters of credit.

Name: Standby letters of credit perform an insurance function similar to that of commercial and trade letters of credit.
Brand: Quizplus
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Standby letters of credit act as a guarantee of payment to the beneficiary if the applicant fails to fulfill their obligations, similar to how commercial and trade letters of credit provide a guarantee of payment for goods and services.

Standby Letters of Credit Perform an Insurance Function Similar to That