A ______________ L/C is one under which the beneficiary has the right to instruct the paying bank to make the credit available to one or more secondary beneficiaries.
A) confirmed
B) transferable
C) unconfirmed
D) irrevocable

Question

Quizplus · Accepted Answer

A transferable L/C allows the beneficiary to transfer their rights to receive payment under the L/C to one or more secondary beneficiaries. This type of L/C is often used in complex trade transactions where the original beneficiary may not be the ultimate supplier or where the beneficiary needs to finance their own purchase of goods from a third party.

A ______________ L/C Is One Under Which the Beneficiary Has