New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In the context of Letters of Credit, which of the

    following banks guarantees payment to the seller after verifying documents and fulfilling the terms of the LC?
    A Issuing Bank Correct Answer Incorrect Answer
    B Advising Bank Correct Answer Incorrect Answer
    C Confirming Bank Correct Answer Incorrect Answer
    D Negotiating Bank Correct Answer Incorrect Answer
    E Reimbursing Bank Correct Answer Incorrect Answer

    Solution

    The Negotiating Bank is responsible for verifying documents submitted by the seller under the Letter of Credit and making the payment if everything is in order

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