The Combination of a Letter of Credit, a Sight Draft

Question 5
Multiple Choice

The combination of a letter of credit, a sight draft, and an order bill of lading protect both parties in international transactions from which of the following? A) the risk of noncompletion B) the risk of foreign exchange risk (when combined with a various hedging techniques) C) the risk that financing will not be available due to foreign exchange risk D) All of these risks are reduced when using these trade implements.