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      Question

      In a Letter of Credit (LC), who is the 'Advising

      Bank'? 
      A The bank that issues the LC on behalf of the buyer. Correct Answer Incorrect Answer
      B The bank in the seller's country that authenticates the LC and notifies the seller. Correct Answer Incorrect Answer
      C The bank that pays the seller immediately upon shipment. Correct Answer Incorrect Answer
      D The bank that guarantees the payment if the issuing bank fails. Correct Answer Incorrect Answer
      E The RBI. Correct Answer Incorrect Answer

      Solution

      The Advising Bank (usually in the exporter's country) verifies the authenticity of the LC and informs the beneficiary (exporter).

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