If an Issuer Requests Its Correspondent Bank Where the Beneficiary

question 51

Multiple Choice

If an issuer requests its correspondent bank where the beneficiary is located to notify the beneficiary of the issuance of a letter of credit, the correspondent bank is called a(n) :

• A) advising bank.
• B) foreign bank.
• C) consulting bank.
• D) coissuer.

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Definitions:

AOQ

Average Order Quantity; the mean volume of goods ordered over a specific period of time, reflecting purchasing behavior.

Population Percent Defective

The percentage of items in a defined population that do not meet predefined standards or specifications.

Producer's Risk

The risk that a producer takes when a good batch is incorrectly rejected based on the sample quality test results, also known as Type I error in statistical testing.

Acceptance Sampling Plan

A statistical quality control method that determines the number of units from a batch to inspect to decide if the entire batch should be accepted or rejected.