Letters of credit are popular among traders because most of the risks are assumed by ________.
A)countertraders
B)importers
C)exporters
D)banks

Question

Quizplus · Accepted Answer

Letters of credit are essentially a guarantee from a bank that payment will be made to the exporter once certain conditions are met, such as providing proof of shipment. As a result, banks assume most of the risks, making it a safer option for traders.

Letters of Credit Are Popular Among Traders Because Most of the Risks