A ____ is a financial contract that states that the importer's bank will pay a specific sum of money to the exporter upon delivery of the merchandise.

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A letter of credit is a financial contract between the importer's bank and the exporter that guarantees payment upon delivery of the merchandise. The importer's bank agrees to pay a specified amount to the exporter, ensuring that the exporter receives payment for the goods shipped. It provides assurance to both the importer and exporter that the terms of the trade will be fulfilled.

A ____ Is a Financial Contract That States That the Importer's