Under a letter of credit arrangement, the bank issuing the letter of credit is known as the ____ bank, the correspondent bank in the beneficiary's country to which the issuing bank sends the letter of credit is known as the ____ bank, and the bank that agrees to examine documents under the letter of credit and pay the beneficiary is called the ____ bank.

Question

Quizplus · Accepted Answer

The bank issuing the letter of credit is known as the issuing bank, the correspondent bank in the beneficiary's country to which the issuing bank sends the letter of credit is known as the advising bank, and the bank that agrees to examine documents under the letter of credit and pay the beneficiary is called the negotiating bank. Therefore, option B is correct as it lists the banks in the correct order.

Under a Letter of Credit Arrangement, the Bank Issuing the Letter