A confirmed letter of credit is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.

Question

Quizplus · Accepted Answer

A confirmed letter of credit involves the confirmation of the exporter's bank by the importer's bank, which ensures the payment to the exporter even if the importer fails to fulfill their payment obligations. Therefore, it is true that a confirmed letter of credit is guaranteed by both banks.

A Confirmed Letter of Credit Is Guaranteed by Both the Exporter's