In the Event That a Discrepancy Is Found in the Documents

question 46

Multiple Choice

In the event that a discrepancy is found in the documents presented under a letter of credit,the bank may request a waiver or:

• A) Resubmit the draft.
• B) Void the transaction.
• C) Refuse delivery.
• D) Refuse to pay against documents.

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Definitions:

Primary Economic Environment

The main economic setting in which a company operates and carries out its operations, often determined by its reporting currency and major market.

Local Overseas Currency

The official money or legal tender used in a country other than one's own, especially in the context of international trade or travel.

Functional Currency

The currency of the primary economic environment in which an entity operates, and in which it typically generates and expends cash.

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.