A Letter of Credit Is a Contract Between an Importer

question 52

True/False

A letter of credit is a contract between an importer and a bank that transfers liability for paying the exporter from the importer to the importer's bank.

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Definitions:

NEMA Standard

Established by the National Electrical Manufacturers Association, these standards provide guidelines for electrical equipment and components, ensuring safety, interoperability, and efficiency.

Connection Terminal

A point at which electrical connections are made or could be made within a circuit.

AC Electrolytic Type Capacitor

A type of capacitor specifically designed for alternating current (AC) applications, known for its high capacitance per volume.

Capacitor-start

A method used in single-phase motors where a capacitor is used to create a phase difference in the starting winding, providing high starting torque.