1) banks on both ends act as intermediaries in processing the shipping documents and collecting payment. This is called:

a.

documents against acceptance

b.

trade acceptance

c.

documentary collections

d.

documents against payment

2) -------------------is a binding financial obligation, so the exporter could file a lawsuit to try to collect the amount owed if the importer does not pay.

a.

A draft

b.

Letters of Credit

c.

Accounts Receivable Financing

d.

Factoring