Melanie's Marbles is a young company that buys unusual marbles from many places around the world.To provide assurance for her vendors that they will be paid, Melanie has established a ______________ at her bank.

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A letter of credit is a financial tool used by businesses to guarantee payment to their suppliers. In this case, Melanie's Marbles is using it to provide assurance to her vendors that they will be paid for the marbles they supply. The bank acts as an intermediary between Melanie and the vendors, and pays the vendors on Melanie's behalf once certain conditions (such as the delivery of the marbles) are met. This reduces the risk for both parties and ensures a smooth transaction.

Melanie's Marbles Is a Young Company That Buys Unusual Marbles