A Letter of Credit LOC Is a Contract Written by a Bank

question 44

True/False

A letter of credit LOC is a contract written by a bank to guarantee that the exporter will pay the importer the amount of money owed.

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Definitions:

World Exports

This term relates to the total sum of goods and services that are sold and shipped by one country to others across the globe.

GDP

stands for Gross Domestic Product, a measure of a nation's total economic output and a key indicator of economic health.

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico that eliminated most tariffs on trade between them.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all goods and services produced over a specific time period.