Which of the Following Is Not True Regarding Letters of Credit

question 3

Multiple Choice

Which of the following is not true regarding letters of credit?

• A) A letter of credit is a written commitment by the importer's bank on the importer's behalf promising to pay the exporter when it presents documents showing that the products have been shipped.
• B) The letters of credit used in international trade are irrevocable.
• C) Letters of credit guarantee that the products shipped are the products purchased.
• D) All of these are true.

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Definitions:

Analytic

Pertaining to the examination of complex material or concepts by breaking them into simpler parts for understanding.

System 1 Thinking

A term from dual-process theory describing fast, automatic, and intuitive approaches to problem-solving and judgment, as opposed to slower, more deliberate thinking.

Slow Thinking System

A cognitive processing style that is deliberate, analytical, and logic-based, typically requiring more effort and time.

Concert

A musical performance in which musicians perform live for an audience, often part of a larger tour or event focusing on a specific genre or artist.