• Question

      Usance bills drawn under Import LC should be retired  ____

      A 10 days from the date of receipt of the bill Correct Answer Incorrect Answer
      B on due date Correct Answer Incorrect Answer
      C last day of the month in which the licence expires Correct Answer Incorrect Answer
      D on presentation Correct Answer Incorrect Answer
      E 5 days from the date of receipt of the bill Correct Answer Incorrect Answer

      Solution

      An LC on whichusance bills are drawn is an acceptance credit or time credit. The bills drawn on the various dates will be honoured on their maturity i.e. the due date under such LC.

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