Which of the Following Is a Disadvantage of Using a Letter

question 68

Multiple Choice

Which of the following is a disadvantage of using a letter of credit (L/C) ?

• A) A letter of credit does not give protection to the importer.
• B) A letter of credit does not give protection to the exporter.
• C) The exporter cannot avail pre-export financing when using a L/C.
• D) The importer must pay a bank fee for the letter of credit.

---

Definitions:

Personal Growth

The process of improving self-awareness, developing talents, enhancing quality of life, and realizing personal dreams and aspirations.

Operant Theorist

A psychologist or researcher who studies or follows the theories of operant conditioning, focusing on how reinforcement and punishment influence behavior.

Defence Mechanisms

Psychological strategies brought into play by individuals or the ego to protect against anxiety or social sanctions and to provide a refuge from a situation with which one cannot currently cope.

Skinner

B.F. Skinner, an influential American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.