Which of the Following Is a Disadvantage of Using a Letter

question 68

Multiple Choice

Which of the following is a disadvantage of using a letter of credit (L/C) ?

• A) A letter of credit does not give protection to the importer.
• B) A letter of credit does not give protection to the exporter.
• C) The exporter cannot avail pre-export financing when using a L/C.
• D) The importer must pay a bank fee for the letter of credit.

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Definitions:

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically elaborated into an organized system.

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Minnesota Multiphasic Personality Test

A psychological test that assesses personality traits and psychopathology to aid in the diagnosis of mental disorders.

Validity

The degree to which a tool, test, or method accurately measures what it's intended to measure or achieves the intended purpose.