A/An ______________ L/C is the obligation of only the issuing bank.
A) confirmed
B) transferable
C) unconfirmed
D) irrevocable

Question

Quizplus · Accepted Answer

An unconfirmed Letter of Credit is the obligation of only the issuing bank, whereas a confirmed Letter of Credit involves a second bank, known as the confirming bank, which adds its confirmation to pay the beneficiary. Transferable and irrevocable are types of L/Cs that can either be confirmed or unconfirmed.

A/An ______________ L/C Is the Obligation of Only the Issuing