Letters of Credit/Assessment

Assessment
1. A confirmed letter of credit includes a
 * a. funds transfer in US Dollars only.
 * b. a request for only a draft and commercial invoice.
 * c. a freely negotiable credit for the seller.
 * d. second bank's promise to pay upon complying document presentation.

2. Unless otherwise stated, all letters of credit are considered
 * a. revocable.
 * b. confirmed.
 * c. irrevocable.
 * d. transferable.

3. A transferable letter of credit allows the beneficiary to transfer the _____________ to a secondary beneficiary.
 * a. letter of credit
 * b. funds
 * c. documents
 * d. liability

(Correct answers: 1=d, 2=c, 3=a)