Most L/Cs issued in connection with global trade transactions are
A)documentary
B)clean
C)revocable
D)created by a combination of a buyer and a seller alone

Question

Quizplus · Accepted Answer

Most L/Cs issued in connection with global trade transactions are documentary, meaning that they require presentation of specific documents in order to receive payment. Clean L/Cs, which do not require this documentation, are less common. L/Cs can also be either revocable or irrevocable, but the question does not provide enough information to determine which type is most common. Finally, L/Cs are typically created by banks rather than buyers and sellers alone.

Most L/Cs Issued in Connection with Global Trade Transactions Are