Which of the following L/Cs is safest for the exporter?
A)revocable,confirmed L/C
B)irrevocable,unconfirmed L/C
C)irrevocable,confirmed L/C
D)revocable L/C

Question

Quizplus · Accepted Answer

An irrevocable, confirmed L/C is the safest option for an exporter. "Irrevocable" means that the L/C cannot be changed or canceled without the consent of all parties involved, providing greater certainty for the exporter. Additionally, a "confirmed" L/C means that a second bank, in addition to the buyer's bank, has added its confirmation to the L/C, assuming responsibility for payment if the buyer's bank default. This provides an additional layer of security for the exporter, making it less likely that payment will be delayed or defaulted upon.

Which of the Following L/Cs Is Safest for the Exporter