Assuming That the General Rules Apply,which of the Following Statements

question 37

Multiple Choice

Assuming that the general rules apply,which of the following statements is TRUE with respect to letters of credit?

• A) Payment is premised upon delivery of the goods in satisfactory condition.
• B) They can be used only for international sales.
• C) The issue of compliance with the letter of credit is subject to the reasonable person test.
• D) They reduce the buyer's risk in an international sale.
• E) None of the above.

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Definitions:

Multilateral Organization

An international institution or group involving three or more countries working together on issues of common interest.

International Trade

The exchange of goods and services across international borders, driven by global demand and supply, tariffs, trade agreements, and economic policies.

Several Governments

Indicates the existence or involvement of multiple governmental bodies or authorities.

World Bank

A multilateral organization designed to provide financing, advice, and research to developing nations to aid their economic advancement.