Which of the Following Correctly States the Role of Banks

question 31

Multiple Choice

Which of the following correctly states the role of banks in import\export transactions involving a letter of credit (L\C) ?

• A)The importer's bank is the advising and\or confirming bank;the exporter's bank is the issuing bank.
• B)The exporter's bank is the advising and\or confirming bank;the importer's bank is the issuing bank.
• C)The exporter's bank is the advising,confirming,and issuing bank.
• D)The importer's bank is the advising,confirming,and issuing bank.
• E)none of the above

---

Definitions:

Outstanding Checks

Checks that have been issued and recorded in the account holder's ledger but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been deposited by a company but have not yet been recorded by the bank, often resulting in discrepancies in bank reconciliation.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money from a debtor at a future date or on demand.

Bank Service Charge

Fees charged by banks for the use of their services, such as account maintenance and wire transfer fees.