Which of the Following Observations Is NOT True of a Letter

question 28

Multiple Choice

Which of the following observations is NOT true of a letter of credit?

• A)It is a credit guarantee.
• B)It is issued by an FI.
• C)It is issued for a fee.
• D)Payment on the letter is contingent on some future event occurring.
• E)It appears on the FI's current balance sheet.

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Definitions:

Assessment Instruments

Tools or methods used to evaluate, measure, or quantify the characteristics or abilities of individuals.

Time Sampling

A method of observational study where data is collected at specific and regular intervals over a period to analyze the occurrence of certain behaviors or events.

Informal Assessment

An evaluation process that is less structured and may include observations, interviews, or unstandardized tests to gather information.

Assessment Instruments

Tools or devices used to evaluate or measure skills, abilities, or knowledge in various academic or professional fields.