A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.
A) documentary draft
B) letter of credit
C) mail order
D) bill of lading

Question

Quizplus · Accepted Answer

A letter of credit is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms. Documentary draft is a type of bill of exchange used in trade transactions, mail order is a method of purchasing goods or services remotely, and bill of lading is a legal document that establishes ownership of goods and details the terms of shipment. Therefore, the best choice is B.

A _____ Is a Document Issued by a Bank That