What Is an Advantage of Having a Letter of Credit

question 85

Multiple Choice

What is an advantage of having a letter of credit?

• A) It allows payment for merchandise after its delivery.
• B) It facilitates an exporter to obtain pre-export financing.
• C) It allows an exporter to get a higher price for his or her goods.
• D) It helps exporters incur lower shipping costs.
• E) It does not require the importer to pay any fee.

---

Definitions:

Entrepreneurs

People who establish, manage, and run companies while accepting higher-than-usual financial risks in the process.

Freedom of Choice

The power or right to make one's own decisions without interference from others, often referred to in the context of consumer choices in the marketplace.

Laundry Detergent

A type of cleaning agent that is used for washing clothes.