Consider a bank that acknowledges that it will make payment on behalf of a computer importer aFter the bank receives documents showing that the computers have been shipped to the importer. This reflects:

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The situation described is a classic example of a letter of credit. A letter of credit is a contractual agreement where a bank guarantees payment to a seller if certain documents are provided, such as proof of shipment or delivery. In this case, the bank agrees to make payment to the computer importer after receiving documents showing that the computers have been shipped. Accounts receivable financing, forfaiting, and factoring do not involve this type of contractual agreement between a bank and a seller.

Consider a Bank That Acknowledges That It Will Make Payment