38. Why letters of credit are formally called “documentary credits”?
E. Because a letter of credit is a binding agreement by a bank to pay a certain sum of
money when the exporter presents the necessary documents to the bank.
F. Because a letter of credit is issued by an issuing bank at the request of the buyer
G. Because in a letter of credit situation, documents are exchanged for money
H. Because the documents in a letter of credit are proofs of trust.
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