When buying from a French supplier,for example,a ________ is a promise by a bank to pay the French firm a certain amount if specified conditions are met.

Question

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A letter of credit is a common method of payment used in international trade. It is a document issued by a bank that guarantees payment to the seller if certain conditions are met. The seller can be confident that they will receive payment, as long as they provide the goods or services as agreed in the contract. A banker's acceptance is a type of financial instrument used in banking transactions, but it is not specifically related to international trade. A franc transfer form and a certified Traveler's Check are also not relevant to this situation.

When Buying from a French Supplier,for Example,a ________ Is a Promise