Which of the Following Completely Eliminates the Risk of Nonpayment

question 79

Multiple Choice

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

• A)documentary credit (letter of credit)
• B)documentary collection
• C)cash in advance
• D)sales on open account
• E)draft

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Definitions:

Import Coffee

The act of bringing coffee into a country from abroad for sale, typically influenced by factors like global production, trade policies, and consumption patterns.

Trade

The exchange of goods and services between individuals, businesses, and countries.

Export Units

Export Units refers to the quantity of goods or services sent out of a country to foreign markets.

Import Units

A measure concerning the quantity of goods or services that a country brings in from other countries for domestic consumption or use.