Which of the following is a method of export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document?
A)Draft
B)Bill of lading
C)Letter of credit
D)Bill of exchange

Question

Quizplus · Accepted Answer

This method is known as a letter of credit. It provides a guarantee to the exporter that they will receive payment once they have met the terms and conditions outlined in the letter of credit. The importer's bank issues the letter of credit, which serves as an assurance to the exporter that they will be paid when the terms of the agreement are fulfilled.

Which of the Following Is a Method of Export/import Financing