Question

Letter of credit is required for obtaining export license. (State with reason whether the given statement is true or false)

Answer 1

Letter of credit serves as a guarantee that is provided by the bank to the specified firm who deals in the export of goods and services.

Here, the bank provides an assurance or commitment on behalf of the sender that the payment to the receiver will be made on the basis of the terms and conditions of the agreement.

In this way a secure and trustworthy agreement is possible. Hence, letter of credit is very important for obtaining trade licence.

Answer 2

Answer:true

Explanation:true