In International Business Transactions, a Documentary Letter of Credit

question 44

Multiple Choice

In international business transactions, a documentary letter of credit:

• A) is a method of payment for goods that reduces the seller's risk from the possibility that the goods will be shipped, but not paid for.
• B) is a type of bill of lading.
• C) is a guarantee by the seller's bank that it will pay the price of the exported goods if the seller breaches the contract.
• D) All of these.

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