WHY LETTERS OF CREDIT ARE FORMALLY CALLED "DOCUMENTARY CREDITS...

49. Why letters of credit 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 the necessary documents to the bank.

B. Because the letter of credit is issued by an 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 proofs of trust.