A Letter of Credit Is

Multiple Choice

A letter of credit is:

A) a guarantee from the importer's bank that is will act on behalf of the importer and pay the exporter for the merchandise if all relevant documents are presented.
B) is a written order instructing the importer or his agent to pay the amount specified on its face on a certain date.
C) is a document issued by the common carrier specifying that it has received the goods for shipment.
D) is a negotiable money market instrument for which a secondary market exists.