If the exporter's bank also confirms the letter of credit, the exporter had managed to get double insurance.

Question

Quizplus · Accepted Answer

When an exporter's bank also confirms the letter of credit, it means that the exporter has an additional guarantee of payment. This is because both the issuing bank (buyer's bank) and the confirming bank (exporter's bank) commit to paying the exporter, providing a double assurance or "double insurance" on the payment.

If the Exporter's Bank Also Confirms the Letter of Credit