Which of the Following Is Not True Regarding Letters of Credit

question 54

Multiple Choice

Which of the following is not true regarding letters of credit?

• A) They are issued by banks on behalf of the importer promising to pay the exporter.
• B) A revocable letter of credit can be cancelled or revoked at any time without prior notification to the beneficiary.
• C) They guarantee that the goods shipped are the goods purchased.
• D) All of the above are true.

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Definitions:

Rugby Team

A group of players organized to compete in rugby, a team sport characterized by running with the ball in hand, passing, and tackling.

Commercial-Grade Coffee Makers

Equipment specifically designed for heavy, consistent use and larger capacity brewing, ideal for businesses or establishments.

Modified Rebuy

Involves a purchasing situation where a buyer is reordering an existing product or service with some modifications to specifications, pricing, or other attributes.

RFP

Request for Proposal; a document issued by an organization to solicit proposals from potential suppliers or service providers.