An Agreement Under Which One Party Agrees to Pay Drafts

question 44

Multiple Choice

An agreement under which one party agrees to pay drafts drawn by a creditor is called a: ______.

• A) contract of surety.
• B) guaranty contract.
• C) letter of credit.
• D) debtor's agreement.

---

Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the external demand for a nation’s goods and services.

Positive Entry

The introduction of new firms into a market in response to observed profits, leading to increased competition.

Goods Imports

The action or process of bringing goods and services from foreign countries into a domestic market for consumption or use.

Exports of Services

Economic transactions where domestic service providers offer their services to entities in foreign countries.