Economics · Banking and Currency
In international trade and banking, what does a 'Letter of Credit' (LC) signify?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A loan agreement signed between two multi-national banking financial institutions
- 2A document certifying the deposit of a specified foreign currency asset
- 3A credit rating certificate issued by a central bank to commercial entities
- 4A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount✓
Correct answer
A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount
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