A ____________ L/C Exists Where the Exporter, as Beneficiary of the First

question 3

Multiple Choice

A ____________ L/C exists where the exporter, as beneficiary of the first L/C, offers its credit as security to finance the opening of a second credit in favor of the exporter's own supplier of the goods needed for shipment under the first or original credit from the advising bank.

• A) confirmed
• B) transferable
• C) unconfirmed
• D) back-to-back

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Definitions:

Principal Elements

Pertains to the fundamental components or ingredients necessary for a system or structure to function.

Ethical Situation

A scenario or circumstance that requires individuals or organizations to choose between alternatives that must be evaluated as right or wrong.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase cost and not adjusted for changes in market value.

Appraisal Value

The assessed value of an asset, typically real estate or a business, determined by a professional appraiser based on the property's condition, market trend, and comparable sales.