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    5. Which type of Letter of Credit allows for multiple drawdowns up to a fixed limit?

    Question

    Which type of Letter of Credit allows for multiple

    drawdowns up to a fixed limit?
    A Red Clause LC Correct Answer Incorrect Answer
    B Green Clause LC Correct Answer Incorrect Answer
    C Irrevocable LC Correct Answer Incorrect Answer
    D Standby LC Correct Answer Incorrect Answer
    E Revolving LC Correct Answer Incorrect Answer

    Solution

    A Revolving LC allows for multiple uses up to a defined limit, particularly suitable for ongoing trade transactions.

    Practice Next
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    Relevant for Exams:

    • PNB SO Credit Officer Scale 1

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