WHY LETTER OF CREDITS ARE FORMALLY CALLED DOCUMENTARY CREDITS

10. Why letter of credits are formally called documentary credits?

A. Because a letter of credit is a binding agreement by a bank to pay a certain sum of

money when the exporter presents necessary documents to the bank

B. Because a letter of credit is issued by a issuing bank at the request of the buyer

C. Because in a letter of credit situation, documents are exchanged for money

D. Because the documents in a letter of credit are proof of trust