Most L/Cs issued in connection with commercial transactions are

Question

Quizplus · Accepted Answer

Most L/Cs issued in connection with commercial transactions require the presentation of specified documents to ensure that the goods or services have been delivered as agreed. This type of L/C is known as a documentary credit. Clean L/Cs, on the other hand, do not require the presentation of documents and are typically used for financial transactions or as a means of payment. Revocable L/Cs can be cancelled or amended by the issuing bank without prior notice to the beneficiary, while irrevocable L/Cs cannot be changed without the consent of all parties involved. Finally, discrepancies in the documents presented can result in a rejection of the L/C, unless they are waived or corrected by the parties involved. Therefore, the most appropriate choice is A) documentary.

Most L/Cs Issued in Connection with Commercial Transactions Are