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      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.

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