7-96 Which of the Following Observations Is NOT True of a Letter

question 74

Multiple Choice

7-96 Which of the following observations is NOT true of a letter of credit?

• A)It is a credit guarantee.
• B)It is issued by an FI.
• C)It is issued for a fee.
• D)Payment on the letter is contingent on some future event occurring.
• E)It appears on the FI's current balance sheet.

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Definitions:

Communicating with Network

The exchange of information between devices or systems over a computer network.

Active Topology

A type of network design where the nodes participate in moving data through the network.

Node

In network terms, a connection point, either a redistribution point or an end point for data transmissions, which can receive, create, store, or send data along distributed network routes.

Move Data

The process of transferring data from one location or storage medium to another, often considered in the context of databases or network transfers.