Question

Who issues letter of credit?
(a)
Exporter bank (b)
Importer bank (c)
Exporter
(d)
Importer
​

Answer 1

Answer:

A letter of credit is a document that guarantees the buyer's payment to the sellers. It is Issued by a bank and ensures the timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer.