A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

Question

Coby Mills

Business

9 November, 02:03

A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

+4

Answers (1)

Know the Answer?

Madelynn Bates · Answer 1

I think that statement is false

a letter of credit does not states that an exporter has availed credit from the bank to manufacture goods, but it st ates that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents instead.