Which of the following is NOT true regarding a letter of credit?
A) The importer and exporter agree on a transaction.
B) The importer applies to its local bank for the issuance of a letter of credit.
C) The exporter applies to its local bank for the issuance of a letter of credit.
D) The importer's bank cuts a sales contract based on its assessment of the creditworthiness of the importer.
Answer: C
Business
You might also like to view...
A domestic company will have many times the revenue of a global company as it focuses only on local regions
Indicate whether the statement is true or false
Business
Brand differentiation occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand
Indicate whether the statement is true or false
Business