Bank charges on letter of credit will depend on the ____.
A) exporter's creditworthiness
B) size of the transaction
C) exporter's means of finance
D) time taken to approve sale

Question

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Bank charges on a letter of credit depend on the size of the transaction. The larger the transaction, the higher the bank charges. Other factors such as the exporter's creditworthiness, means of finance, and time taken to approve sale may also affect the bank charges, but the size of the transaction is a major factor.

Bank Charges on Letter of Credit Will Depend on the ____