What term identifies a bank's promise to pay a foreign business firm (e.g., German firm) a certain amount if the specified conditions are met?

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A letter of credit is a binding promise from a bank that they will make a payment to a foreign business firm when certain conditions are met, such as the delivery of the specified goods or services. This provides assurance to the foreign firm that they will receive payment, and also reduces risk for the exporter.

What Term Identifies a Bank's Promise to Pay a Foreign