In global trade,a ________ is a written agreement by a bank to pay the seller,on account of the buyer,a sum of money upon presentation of certain documents.

Question

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A letter of credit is a written agreement between the buyer's bank (issuing bank) and the seller's bank (receiving bank) that guarantees payment to the seller upon presentation of specified documents, such as shipping documents or other evidence of performance. The buyer's bank is making a promise to pay the seller, subject to certain conditions being met, which gives confidence to the seller in conducting the transaction.

In Global Trade,a ________ Is a Written Agreement by a Bank