Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A)An FI that issues a documentary letter of credit to one of its customers implicitly believes that the customer's credit standing is not sufficiently high enough to engage in international transactions.
• B)An FI that issues a documentary letter of credit to one of its customers implicitly assumes the borrower's credit risk.
• C)An FI that issues a documentary letter of credit to one of its customers has created a contingent asset.
• D)None of the listed options are correct.

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