Issued by a bank at the request of an importer,the ________________ states that the bank will pay a specified sum of money to the beneficiary on presentation of particular,specified documents.
A) bill of lading
B) letter of credit
C) time draft
D) sight draft
E) draft

Question

Quizplus · Accepted Answer

The definition provided matches with the description of a letter of credit, which is a common trade finance instrument used in international transactions to give assurance to the exporter that they will receive payment from the importer's bank once they meet the documentary requirements specified in the letter of credit. A bill of lading is a document that confirms the shipment of goods, while a draft is a type of payment order. A time draft and a sight draft are two types of drafts that differ in terms of when payment is due.

Issued by a Bank at the Request of an Importer,the