Banking · Trade Finance Rules
Consider the following statements regarding Documentary Credit: Statement 1: A Documentary Credit transaction is entirely free from financial risk for the seller, as payment is irrevocably guaranteed upon any presentation. Statement 2: According to UCP 600, the Issuing Bank is responsible for physically verifying the actual shipment and quality of goods before payment. Which of the following is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement 1 and Statement 2 are false✓
- 2Statement 1 is false, but Statement 2 is true
- 3Statement 1 is true, but Statement 2 is false
- 4Both Statement 1 and Statement 2 are true
Correct answer
Both Statement 1 and Statement 2 are false
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