L/C Eliminates Credit Risk If the Bank That Opens It

question 19

True/False

L/C eliminates credit risk if the bank that opens it is of good standing. It also increases the risk that payment will be delayed or withheld owing to exchange controls or other political acts.

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Definitions:

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Hardy Personality

Describes individuals who exhibit resilience and a stronger ability to cope with stress.

Catastrophizing

An irrational thought process where an individual believes something is far worse than it actually is, often leading to increased anxiety and stress.

Conformity

Behaving in a way that meets a specified standard, in coordination with a group.