Which of the following can be withdrawn by the issuing bank without the prior…
2019
Which of the following can be withdrawn by the issuing bank without the prior consent of the exporter?
- A.
Clean letter of credit
- B.
Revocable letter of credit
- C.
Documentary letter of credit
- D.
Revolving letter of credit
Attempted by 49 students.
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Correct answer: B
A Revocable Letter of Credit can be amended or canceled by the issuing bank without prior notice or consent of the exporter (beneficiary). It provides less security to the exporter because the terms can be changed at any time before payment is made.