A _____ is issued by a bank,and it indicates that the bank will make payments under specific circumstances.
A) bill of exchange
B) bill of lading
C) letter of credit
D) time draft
E) usance draft

Question

Quizplus · Accepted Answer

A letter of credit is a document issued by a bank that guarantees the payment of a customer's obligation up to a specified amount and under specific conditions. It assures the seller that they will receive payment for the goods or services they provide to the buyer, even if the buyer defaults on the payment. It serves as a financial instrument to reduce the risk of non-payment in international trade transactions.

A _____ Is Issued by a Bank,and It Indicates That