If an Issuer Requests Its Correspondent Bank Where the Beneficiary

question 51

Multiple Choice

If an issuer requests its correspondent bank where the beneficiary is located to notify the beneficiary of the issuance of a letter of credit, the correspondent bank is called a(n) :

• A) advising bank.
• B) foreign bank.
• C) consulting bank.
• D) coissuer.

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Definitions:

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for a product, unlike a price-discriminating monopolist who charges different prices.

Marginal Revenue

The additional income earned by selling one more unit of a product or service, reflecting the incremental increase in total revenue.

Nondiscriminating Profit-maximizing Monopolist

A monopolist who charges a uniform price for all units of output sold to all customers, maximizing profit without price discrimination.