What Is the Difference Between a Revocable Letter of Credit

question 28

Multiple Choice

What is the difference between a revocable letter of credit and an irrevocable letter of credit?

• A)A revocable letter of credit can be cancelled at any time by either the importer or the exporter,but an irrevocable letter of credit cannot be cancelled.
• B)A revocable letter of credit can be assigned to anyone,but an irrevocable letter of credit can only be assigned upon the consent of the issuing bank.
• C)The terms of an irrevocable letter of credit cannot be changed without the consent of the beneficiary of the letter of credit.
• D)Since the terms of letters of credit are standardized and apply whatever name is given to a letter of credit,there is no distinction between revocable and irrevocable letters of credit.

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Definitions:

Supplier Relationships

The interactions and partnerships formed between a buying company and its suppliers, crucial for ensuring supply chain efficiency and resilience.

Services On Demand

The delivery of services exactly when they are needed or requested by customers, often facilitated by technology and the digital economy.

E-Purchasing

The process of buying goods and services via electronic means, particularly through the internet, for businesses or personal use.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as a manufacturer owning its supplier and/or distributor.