A(n) ________ is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.
A) revocable letter of credit
B) confirmed letter of credit
C) bill of lading
D) irrevocable letter of credit

Question

Quizplus · Accepted Answer

A confirmed letter of credit is guaranteed by both the exporter's bank and the importer's bank, providing a secure payment method for international transactions. Revocable letters of credit can be cancelled or modified by the buyer without the seller's consent, making them less secure for the exporter. Irrevocable letters of credit are guaranteed by the importer's bank, but not necessarily by the exporter's bank. Bills of lading are shipping documents, not payment guarantees.

A(n) ________ Is Guaranteed by Both the Exporter's Bank in the Country