An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's:
A)in-house export organization.
B)bank.
C)freight forwarder.
D)credit union.
E)checking account.

Question

Quizplus · Accepted Answer

An irrevocable letter of credit transfers the payment obligation from the buyer to the buyer's bank, ensuring the seller that payment will be made by the bank if the buyer fails to fulfill their payment obligations.

An Irrevocable Letter of Credit Transfers the Payment Obligation for an Export