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What Is a Letter of Credit

Question 44

Multiple Choice

What is a Letter of Credit?


A) Where the bank promises to pay a specified amount of money on presentation
B) A way for a bank to establish and maintain a credit card account on behalf of an exporter
C) A letter given to large shipping companies by a bank or trading company when credit terms are negotiated
D) An instrument of currency issued by a foreign government to an exporter of services

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