Which of the following statements is are false about standby letters of credit?
A) They are often used in international trade to facilitate transactions involving a seller with insufficient knowledge of the creditworthiness of the buyer.
B) They are used by banks as credit enhancements for securitizations in a nervous market.
C) They are a performance guarantor of an account party but do not involve a funding transaction.
D) Similar to loan commitments, they contain a MAC clause.
E) None of the above
Correct Answer:
Verified
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A)gives its seller the right
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A)gives its seller
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