Which of the Following Is True of a Letter of Credit

question 8

Multiple Choice

Which of the following is true of a letter of credit in international trade?

• A)No cash deposit or collateral is required from the importer.
• B)The exporter pays the trusted third party (usually a bank) a fee for the service.
• C)It becomes a financial contract between the trusted third party (usually a bank) and the exporter.
• D)It is issued by the exporter at the request of the importer.
• E)The creditworthiness of the importer is irrelevant when issuing a letter of credit.

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Definitions:

CS

In psychology, CS stands for Conditioned Stimulus, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

US

in the context of conditioning, stands for the Unconditioned Stimulus, which automatically triggers a response without any learning needed.

Discrimination Training

A process in behavior analysis used to teach an individual to differentiate between stimuli or behaviors based on reinforcement or punishment.

Generalization

The process of formulating general concepts by abstracting common properties of instances.