A ____________ L/C exists where the exporter, as beneficiary of the first L/C, offers its credit as security to finance the opening of a second credit in favor of the exporter's own supplier of the goods needed for shipment under the first or original credit from the advising bank.
A) confirmed
B) transferable
C) unconfirmed
D) back-to-back

Question

Quizplus · Accepted Answer

The description matches with the definition of a back-to-back L/C. It involves two separate L/Cs, where the second L/C is opened based on the first L/C, and the first L/C serves as collateral for the second L/C.

A ____________ L/C Exists Where the Exporter, as Beneficiary of the First