The instrument that is a bank's promise to pay for goods stored overseas is called a:

Question

Quizplus · Accepted Answer

A Letter of Credit is a bank's promise to pay the seller on behalf of the buyer, ensuring that the seller will receive payment as long as the terms and conditions stated in the letter of credit are met. It is commonly used in international trade to facilitate payments across borders and to provide a level of security for the transactions involving goods stored or shipped overseas.

The Instrument That Is a Bank's Promise to Pay for Goods