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What Term Identifies a Bank's Promise to Pay a Foreign

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What term identifies a bank's promise to pay a foreign business firm (e.g., German firm) a certain amount if the specified conditions are met?
Bank loan
Letter of credit
Promissory note
Deposit
Electronic funds transfer


Definitions:

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.

Tariff

A tax imposed by a government on imported or exported goods to protect domestic industries or to generate revenue.

Producer Surplus

The disparity between the amount producers are prepared to take for a product or service and the amount they actually get.

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