The Major Advantage of a Letter of Credit to the Exporter

question 29

True/False

The major advantage of a letter of credit to the exporter is that the exporter does not receive any funds until the documents have arrived at a local port or airfield.

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Definitions:

Authority

Authority refers to the legal right or power given to an individual or organization to carry out certain actions or enforce rules and decisions.

Contract

A legally binding agreement between two or more parties that outlines obligations each party must fulfill.

Principal

The original sum of money borrowed in a loan, or the amount of money invested excluding earnings or interest.

Gratuitous

Given without receiving any value in return; often refers to acts of kindness or gifts.