A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.
A) Licence
B) letter of credit
C) bill of lading
D) Draft
E) voucher

Question

Quizplus · Accepted Answer

A letter of credit is specifically issued by a bank to guarantee payment to a beneficiary (often the exporter) on behalf of an importer. This provides security and assurance for all parties involved in an international trade transaction.

A ____ Is Issued by a Bank Upon Request of an Importer