Question

What is the main function of an advising bank in a

Q: Answer-What is the main function of an advising bank in a documentary credit transaction?

The advising bank does not provide payment or credit guarantees but acts as a liaison, notifying the seller of the letter of credit issued by the buyers bank. It confirms the authenticity of the credit but does not engage in the actual payment process.

documentary credit transaction?

A To approve the buyer’s creditworthiness

B To issue the letter of credit to the seller

C To verify the documents presented by the seller and make payment

D To notify the seller of the letter of credit issued by the buyer’s bank

E To handle the shipment of goods from the seller to the buyer

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What is the main function of an advising bank in a

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