Which of the Following Is an Advantage of Having a Letter

question 45

Multiple Choice

Which of the following is an advantage of having a letter of credit?

• A)It allows payment for merchandise after its delivery.
• B)It facilitates an exporter to obtain pre-export financing.
• C)It allows an exporter to get a higher price for his or her goods.
• D)It helps exporters incur lower shipping costs.
• E)It does not require the importer to pay any fee.

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Definitions:

Well-being

A comprehensive term for the condition of an individual or group, encompassing physical, psychological, and social aspects.

Unemployment Insurance

A government program that provides financial assistance to individuals who have lost their jobs through no fault of their own.

Minimum-Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, often leading to unemployment.