📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    In a Letter of Credit transaction, who bears the primary

    responsibility of payment to the exporter?
    A Exporter’s bank Correct Answer Incorrect Answer
    B Importer Correct Answer Incorrect Answer
    C Issuing bank Correct Answer Incorrect Answer
    D Advising bank Correct Answer Incorrect Answer
    E Insurance company Correct Answer Incorrect Answer

    Solution

    The issuing bank guarantees payment to the exporter upon fulfillment of documentary terms, not the importer directly.

    Practice Next
    ask-question