Put the following steps of the creation of a banker's acceptance in order.
I. Shipping documents delivered
II. Letter of credit delivered
III. Bankers' acceptance presented at maturity
IV. Goods are shipped
A) I, IV, II, III
B) II, IV, III, I
C) II, IV, I, III
D) I, IV, III, II
E) I, II, III, IV

Question

Put the following steps of the creation of a banker's acceptance in order. 
I. Shipping documents delivered
II. Letter of credit delivered
III. Bankers' acceptance presented at maturity
IV. Goods are shipped
A) I, IV, II, III
B) II, IV, III, I
C) II, IV, I, III
D) I, IV, III, II
E) I, II, III, IV

Quizplus · Accepted Answer

The letter of credit (II) must be delivered before the goods are shipped (IV) to ensure payment. Once the goods are shipped, the shipping documents (I) are delivered to the bank, who then creates the banker's acceptance (IV). Finally, the banker's acceptance is presented at maturity (III). Therefore, the correct order is II, IV, I, III. Choice C is the only option with this order.

Put the Following Steps of the Creation of a Banker's