___________ is a commitment by a bank on behalf of the buyer that payment will be made to the exporter if the terms and conditions are met.

Letter of credit

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Consignment

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Open Account

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None of the above

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Solution

The correct option is A Letter of credit
letter of credit is bank guarantee which is provided by the bank to the party concern .stating that if partty defaults the bank will pay on the behalf of party

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___________ is a commitment by a bank on behalf of the buyer that payment will be made to the exporter if the terms and conditions are met.

The correct option is A Letter of creditletter of credit is bank guarantee which is provided by the bank to the party concern .stating that if partty defaults the bank will pay on the behalf of party

The correct option is A Letter of credit
letter of credit is bank guarantee which is provided by the bank to the party concern .stating that if partty defaults the bank will pay on the behalf of party