QUESTION $4$

No$-$Carb Pasta Corp. is exporting for the first time to South America and has contracted with Good Foods Imports in Brazil for an initial order valued at $$75,000.$ No$-$Carb Pasta Corp. wants Good Foods Imports to secure a document from a Brazilian bank that indicates the bank will pay No$-$Carb Pasta Corp. $$75,000$ upon presentation of specified documents by the exporter. What document is No$-$Carb Pasta Corp. asking for?

letter of credit

sight draft

bill of exchange

bill of lading

time draft

QUESTION $5$

What is the purpose of a letter of credit?

It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay. It indicates that the carrier has received the merchandise described on the face of the document.

It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents.

It is a document written by an exporter instructing an importer to pay a specified amount of money at a specified time.

It serves as a receipt, a contract, and a document of title.

$q,$

QUESTION $6$

A range of barterlike agreements by which goods and services are traded for other goods and services when they cannot be traded for money is known as

countertrade.

free trade.

counter sale.

countervailing duty.

carry trade.