Which of the Following Is (Are) True Concerning the UCP

question 31

Multiple Choice

Which of the following is (are) true concerning the UCP?

• A) The UCP is a standardized set of rules in virtually all nations.
• B) Because the UCP was drafted by the ICC and is recognized in most states, it automatically governs international letters of credit.
• C) The UCP will govern a letter of credit only if its provisions are incorporated into the letter of credit by reference.
• D) A and C only.
• E) A and B only.

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Definitions:

Economic Costs

Total expenses incurred in the production of goods and services, including both explicit and implicit costs.

Own Capital

The funds or assets owned by a business or individual, invested to start or operate a business.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs in response to market changes.

Inputs

Inputs are the resources such as labor, materials, and capital that are used in the production process to create goods and services.