Which of the following is a reason for standby credit letters' growth in the recent years?

Question

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Standby credit letters have grown in popularity as a result of the rapid growth of direct financing by companies. This method allows companies to directly obtain financing without going through traditional bank loans, thereby necessitating the use of standby credit letters as a guarantee of payment, which serves as a risk-reduction tool in these transactions.

Which of the Following Is a Reason for Standby Credit