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      Question

      A 'Letter of Credit' (LC) is a payment mechanism used

      primarily in:Β 
      A Retail Banking Correct Answer Incorrect Answer
      B Personal Loans Correct Answer Incorrect Answer
      C International and Inland Trade Correct Answer Incorrect Answer
      D Mortgage Banking Correct Answer Incorrect Answer
      E Microfinance Correct Answer Incorrect Answer

      Solution

      An LC is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.

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