Multiple Choice
Which of the following statements is true?
A) An FI that issues a documentary letter of credit to one of its customers implicitly believes that the customer's credit standing is not sufficiently high enough to engage in international transactions.
B) An FI that issues a documentary letter of credit to one of its customers implicitly assumes the borrower's credit risk.
C) An FI that issues a documentary letter of credit to one of its customers has created a contingent asset.
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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