A standby letter of credit guarantees payment on: shipments of oil. a security. shipments of wheat....

A standby letter of credit guarantees payment on: shipments of oil. a security. shipments of wheat. stock.

Expert Solution

Standby letter of credit is a legal document that guarantees Bank commitment to the seller in case the buyer will default. Standby letter of credit will be helping the guaranteed payment of shipment of oil between one country to another country.

Shipment of wheat is generally leading to a lower amount and it will not be requiring standby letter of credit and it is mostly related to shipment of oil.

Correct answer will be SHIPMENT OF OIL.

jeff jeffy answered 2 years ago

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a sample of a full document of the letter of credit issued by the buyer's bank

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A standby letter of credit guarantees payment on: shipments of oil. a security. shipments of wheat....

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