A___ is a letter from a bank guaranteeing that a buyer will pay the seller on time.

Bill of lading

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Letter of credit

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Bill of entry

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None of the above

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Solution

The correct option is B
Letter of credit

A letter of credit is a letter from a bank guaranteeing that a buyer will pay the seller on time. If the bank is unable to make payment, the bank will be requrired to cover the unpaid amount.

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Similar questions

The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is

(a) Letter of hypothetication

(b) Letter of credit

(d) Bill of exchange

What is a bill of entry and a bill of lading?

What is bill of lading? How does it differ from bill of entry?

It is guaranteed, that the letter issued by the import's bank stating that it will honour the report bills to the bank of the exporter on to a certain account. Identity the document.

Q. When Consignor discounts the bills receivable with bank, then which of the following entry will be passed in the books of Consignor?

A.Consignment A/c Discount A/c To Bills Receivable A/c	Dr. Dr.
A.Bank A/c Profit & Loss A/c To Bills Receivable A/c	Dr. Dr.
C.Bank A/c Consignment A/c To Bills Receivable A/c	Dr. Dr.
D.None of the above.

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A___ is a letter from a bank guaranteeing that a buyer will pay the seller on time.

The correct option is B Letter of credit A letter of credit is a letter from a bank guaranteeing that a buyer will pay the seller on time. If the bank is unable to make payment, the bank will be requrired to cover the unpaid amount.

The correct option is B
Letter of credit

A letter of credit is a letter from a bank guaranteeing that a buyer will pay the seller on time. If the bank is unable to make payment, the bank will be requrired to cover the unpaid amount.