When a Commercial Bank Issues a Payment Guarantee on Behalf

question 58

Multiple Choice

When a commercial bank issues a payment guarantee on behalf of an importer,that guarantee is a:

• A)documented transfer.
• B)letter of credit.
• C)time draft.
• D)sight draft.

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Definitions:

Lowest Terms

Lowest terms refer to a fraction that has been simplified to its smallest possible integer numerator and denominator.

Fractions

Fractions represent parts of a whole or any number of equal parts, typically written with a numerator and a denominator, separated by a slash.

Acres

A unit of land area measurement used in the U.S. customary and imperial systems, equal to 43,560 square feet or about 4,047 square meters.

Oats

A cereal grain known for its edible seeds, often consumed as oatmeal or rolled oats, and used as livestock feed as well as in various food products.