In Which of the Following Forms of Export Financing Does

question 50

Multiple Choice

In which of the following forms of export financing does a bank assume a financial obligation?

• A)with an L\C but not a documentary collection
• B)with a documentary collection but not an L\C
• C)neither an L\C nor a documentary collection requires a bank to assume financial obligation
• D)with either an L\C or a collection letter
• E)with both an L\C and a documentary collection

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Definitions:

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case.

UCC

A complete range of laws called the Uniform Commercial Code is designated to administer commercial activities in the United States.

Flexible Statute

A law designed to be adaptable and able to accommodate various situations as they arise.

Liquidated Damages Provision

A contractual clause that determines the amount of damages payable if one of the parties breaches the agreement.