Which of the following is a key advantage(s) of issuing standby letters of credit?
A) Letters of credit generate fee income for the bank.
B) Letters of credit typically reduce the borrower's cost of borrowing.
C) Letters of credit can usually be issued for a relatively low cost.
D) The probability is low that the issuer of the letter of credit will be called upon to pay.
E) All the options are correct.
Correct Answer:
Verified
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