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CTP · Question #7

(Topic 1) A U.S. exporter sells goods to a foreign buyer in U.S. dollars and wants to guarantee that payment is made by the buyer. The exporter would MOST LIKELY require a(n):

The correct answer is C. letter of credit. See the full explanation below for the reasoning.

Question

  • (Topic 1)

A U.S. exporter sells goods to a foreign buyer in U.S. dollars and wants to guarantee that payment is made by the buyer. The exporter would MOST LIKELY require a(n):

Options

  • Abankers' acceptance.
  • Bdocumentary collection.
  • Cletter of credit.
  • Dopen account.

How the community answered

(21 responses)
  • A
    10% (2)
  • B
    5% (1)
  • C
    81% (17)
  • D
    5% (1)

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