Multiple Choice
Why does a letter of credit reduce an importer's ability to borrow funds?
A) The importer has to pay fees to the bank for the letter of credit.
B) It is a financial liability against the importer.
C) The importer has to pay for the merchandise immediately.
D) The importer has to pay for unsatisfactory products.
Correct Answer:
Verified
Correct Answer:
Verified
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