The Combination of a Letter of Credit, a Sight Draft

question 6

Multiple Choice

The combination of a letter of credit, a sight draft, and an order bill of lading protect both parties in international transactions from which of the following?

• A) the risk of noncompletion
• B) the risk of foreign exchange risk (when combined with a various hedging techniques)
• C) the risk that financing will not be available due to foreign exchange risk
• D) All of these risks are reduced when using these trade implements.

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Definitions:

Work Accomplishments

Achievements or completed tasks that contribute towards personal, team, or organizational goals.

Formally

In accordance with established procedures or protocol, often in an official capacity.

Job Rotation

A practice where employees are moved between different jobs or tasks at a company to gain a variety of skills and reduce monotony.

Capabilities

The qualities, skills, and abilities that enable an individual or organization to perform effectively.