Which of the Following Is True of a Letter of Credit

question 17

Multiple Choice

Which of the following is true of a letter of credit?

• A)It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular,specified documents.
• B)It is a document written by an exporter instructing an importer to pay a specified amount of money at a specified time.
• C)It serves as a receipt,a contract,and a document of title.
• D)It indicates that the carrier has received the merchandise described on the face of the document.
• E)It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.

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Definitions:

Welfare System

A governmental system that provides financial aid and services to individuals and families in need.

Dependency

A relationship in which one entity relies on another for support or sustenance.

Taste-For-Discrimination Model

An economic theory that explains how personal bias and preferences can lead to differences in wages and employment opportunities for various groups.

Prejudice

Preconceived opinions or judgments towards people or groups without sufficient knowledge, reason, or direct experience, often leading to discrimination.