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What process ensures payment safety for exporters by involving a bank’s guarantee?

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Question

What process ensures payment safety for exporters by involving a bank’s guarantee?

Options

  • C&F Agent Appointment

  • Insurance Certificate

  • Letter of Credit (L/C)

  • Export Incentive Claim

MCQ
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Solution

Letter of Credit (L/C)

Explanation:

A Letter of Credit is a promise by the buyer's bank to pay the exporter if contract terms are fulfilled.

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