Answered: importer’s bank writes a guarantee of…

importer’s bank writes a guarantee of payment? a. A commercial letter of credit b. Payment in advance c. A syndicate d. A banker’s acceptance

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Which of the following payment types offers payment protection to both exporters and importers, as the importer’s bank writes a guarantee of payment?

a. A commercial letter of credit

b. Payment in advance

c. A syndicate

d. A banker’s acceptance

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