Which one of the following statements in the context of ‘Letter of Credit’ is correct?
A. It is an arrangement, whereby the obligation to pay the seller is undertaken by a bank
B. The Letter of Credit need not necessarily specify any amount
C. All Letters of Credit are revocable
D. Revolving Letter of Credit refers to an arrangement whereby the bank undertakes to make payment to multiple sellers
Answer:A
Which one of the following statements in the context of ‘Letter of Credit’ is correct?
A. It is an arrangement, whereby the obligation to pay the seller is undertaken by a bank B. The Letter of Credit need not necessarily specify any amount C. All Letters of Credit are revocable D. Revolving Letter of Credit refers to an arrangement whereby the bank undertakes to make payment to multiple sellers