Which of these allows the bank issuing a letter of credit to modify the terms of the letter only after obtaining the approval of both exporter and importer?
A) Revocable letter of credit
B) Confirmed letter of credit
C) Bill of lading
D) Irrevocable letter of credit

Question

Quizplus · Accepted Answer

An irrevocable letter of credit is a type of letter of credit that cannot be modified or canceled without the consent of all parties involved (exporter, importer, and the issuing bank). Therefore, if the bank wants to modify the terms of the letter, it will need to obtain the approval of both the exporter and importer.

Which of These Allows the Bank Issuing a Letter of Credit