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.

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