__________ is a letter of credit that allows the issuing bank to make the payment to the beneficiary in installments.

Unconfirmed LC

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Revolving LC

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Back to back LC

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Deferred LC

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Anticipatory LC

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Solution

The correct option is D Deferred LC
Deferred LC is that which allows the issuing bank to make the payments to the beneficiary in installments. The timing and the amounts of the installments are predetermined.
Hence, option (D) is the correct answer.

Suggest Corrections

Similar questions

Q8. Consider the following statements with respect to Letter of Credit:

1. Letter of Credit is an instrument for assured payments.

2. It is an undertaking of the issuing bank to make payment to the beneficiary.

Which of the above statements are correct?

Explain how money is a better substitute to barter system as a standard of deferred payments?

Reena a bought a house. While valuing her house, her grandmother valued it in terms of buffalo and carts.

What is the problem that is being faced in the valuation process?

(a) Lack of double coincidence of wants

(b) Lack of store of value

(d) Lack of standard for deferred payment

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