Letters of Credit/Assessment
|Unit 4.5-Letters of Credit|
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)