Under a letter of credit arrangement, the bank issuing the letter of credit is known as the ____ bank, the correspondent bank in the beneficiary's country to which the issuing bank sends the letter of credit is known as the ____ bank, and the bank that agrees to examine documents under the letter of credit and pay the beneficiary is called the ____ bank.

Question

Quizplus · Accepted Answer

- The bank issuing the letter of credit is known as the issuing bank.
- The correspondent bank in the beneficiary's country to which the issuing bank sends the letter of credit is known as the advising bank.
- The bank that agrees to examine documents under the letter of credit and pay the beneficiary is called the negotiating bank.

Under a Letter of Credit Arrangement, the Bank Issuing the Letter