Business Studies, asked by karandeajinkya345, 9 months ago

Explain letter of credit.

Answers

Answered by arushimishra029
5

Answer:

A letter of credit, or "credit letter" 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. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase

Answered by vijayshree1098
2

Answer:

letter of credit

Explanation:

A letter of credit, or "credit letter" 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. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase

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