A revolving letter of credit
A) automatically renews.
B) is always transferable.
C) is the obligation of only the issuing bank.
D) is always cumulative.

Question

Quizplus · Accepted Answer

A revolving letter of credit automatically renews, meaning that the issuing bank will continue to provide financing for the specified amount and time period until the credit is cancelled or expires. This allows the buyer to make multiple transactions using the same credit without having to arrange for a new credit each time.

A Revolving Letter of Credit