The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer
A)must determine whether the contract conditions have been satisfied.
B)does not inquire into whether the contract conditions have been met.
C)pays only against the facts reflected in documents presented by the beneficiary.
D)has the obligation to police the underlying contract.

Question

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The Answer of The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer
A)must determine whether the contract conditions have been satisfied.
B)does not inquire into whether the contract conditions have been met.
C)pays only against the facts reflected in documents presented by the beneficiary.
D)has the obligation to police the underlying contract.

The Use of a Letter of Credit in a Transaction