A standby letter of credit is similar to a "simple" letter of credit except for
A) it generally has a much longer validity period.
B) it usually applies to more than one shipment from the exporter to the importer.
C) it allows the exporter to extend an open account to the importer, using the letter of credit only if the importer doesn't meet its obligations.
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

All answers are applicable to the ways a standby letter of credit is different from a simple letter of credit.

A Standby Letter of Credit Is Similar to a "Simple