Which one of the following is not a description of a letter of credit?
A) Irrevocable versus revocable.
B) Instant versus prolonged.
C) Confirmed versus unconfirmed.
D) Revolving versus non-revolving.

Question

Quizplus · Accepted Answer

A letter of credit is a financial document in which a bank agrees to pay a certain amount of money to a seller on behalf of the buyer, as long as certain conditions are met. The other choices – irrevocable versus revocable, confirmed versus unconfirmed, and revolving versus non-revolving – are all descriptions that apply to letters of credit. However, there is no such thing as an instant or prolonged letter of credit.

Which One of the Following Is Not a Description of a Letter