Which of the following is a method of export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document?
A) sight draft
B) bill of lading
C) letter of credit
D) bill of exchange

Question

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A letter of credit is a document issued by the importer's bank that guarantees payment to the exporter upon fulfillment of the terms of the document. It provides assurance to the exporter that they will be paid for their goods or services and serves as a form of export/import financing. A sight draft is a different type of payment method where the exporter presents the draft to the importer for payment upon receipt of the goods, while a bill of lading is a document that serves as evidence of the shipment of goods. A bill of exchange is a negotiable instrument that allows one party to order another party to pay a certain amount of money at a future date.

Which of the Following Is a Method of Export/import Financing