A Letter of Credit

question 28

Multiple Choice

A letter of credit:

• A) is a written instrument that orders payment of a certain sum of money to the party specified by the bill
• B) is a financial document that permits the exporter to ship goods between countries without pre-customs clearance
• C) is an agreement by the bank of the buyer to pay a certain sum to the seller upon receipt of certain documentation
• D) is a government document that provides for the purchase of goods from foreign sellers on open account
• E) allows a company to repatriate its foreign profits