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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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