Question: What is a documentary letter of credit used for?

What is a documentary letter of credit used for?

Step by Step Solution

★★★★★

3.46 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

In order to transact business internationally some businesses located in foreign locales req... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

640-B-A-F-A-F (771).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

The plaintiff contracted to purchase hog bristles from Transea Traders in India. The defendant bank issued an irrevocable letter of credit to Transea covering a shipment of hog bristles and payable...

Q:

1. What basic principle of letter of credit law does this decision challenge? 2. How would the result be different if the draft and documents had been sold and negotiated to a holder in due course...

Q:

What is the important difference between international and domestic transactions? How is a letter of credit used in financing international trade transactions? How is netting used in transactions...

Q:

What is a documentary letter of credit used for

Q:

Please answer the following questions - T/F and MCQs. Answer the following MCQ and True/False Questions. There are some unique costs that the exporters need to consider with international...

Q:

Multiple choice questions 1.International trade finance instruments, risk insurance, international financial institutions and aid agencies, and risk transfer are all different risk mitigation options...

Q:

TRANSACTION FACTS Itis the year 2028. The date you are considering these facts is at 1 June 2028. ARC Technologies Pty Ltd (ARC) is incorporated and based in Australia and provides engineering...

Q:

Which of the following plays a role to verify that the documents received are as required in the collection order and forwards them to the importers bank? * Presenting bank The remitting bank The...

Q:

Note: Answer the following questions : 1.One of the key differences between Documents Against Payments (D/P) and Documents Against Acceptance (D/A) is that if you are using the D/P, the exporter...

Q:

Please show me a brief report which involved that me as a CEO of a Canadian firm wants to find a new snacks supplier from Japan, please explain the risk assessment below that we had done on this new...

Q:

Jintian Clothing Ltd. manufactures sportswear and sells it to large department stores in western Canada. The company records sales in a sales journal. When a customer orders merchandise, a sales...

Q:

a. Suppose the discount rate in Problem 13a changes to 13 percent (.13). Perform present value analysis using the new discount rate. b. What is your recommendation to Alamo Foods now? c. Explain the...

Q:

Help Sove 8 Erif The most active and important participant in the U . S . money market: 0 0 2 7 1 2 0 Multiple Choice is the U . S . Treasury. are the large banks. are the investment banks. are the...

Q:

Firms engaged in monopolistic competition a. have positive long-run profi t, guaranteed. b. have zero long-run profi ts. c. have negative long-run profi ts, guaranteed. d. face market-level demand...

Q:

Multiple Choice Questions: 1. SAS No. 99, Consideration of Fraud in a Financial Statement Audit, requires that auditors report any evidence found that fraud may exist to which of these? a. Inventory...

Q:

Multiple Choice Questions: 1. Which of these must apply to fraud indicators? a. Be defined in terms of one factor. b. Be defined in terms of at least one factor. c. Be defined in risk terms rather in...

Q:

Why is fraud detection not always relevant to applying SAS No. 99?

Q:

The Gesserit Corporation had recently announced $6 earnings per share and the continuation of 30% return on equity which is expected to continue forever. The stock discount rate is 15%. a. Assuming...

Q:

If you are a financial analyst and is examining a new project. The project is expected to sell 5,900 units per year at $73 net cash flow apiece for the next 10 years. In other words, the annual...

Q:

are raw facts concerning objects and events. data information knowledge metadata