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Business Studies

Letter of Credit

Why do export...

Question

Why do exporters demand letters of credit?

A

Maximise the risk of non-payment by importers.

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B

Minimise the risk of non-payment by importers.

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Solution

The correct option is B
Minimise the risk of non-payment by importers.

Exporters demand letter of credit to minimise the risk of non-payment by importers.

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Letter of Credit

Standard XI Business Studies

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