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An instrument that guarantees an exporter that the importer of their goods will pay promptly for the ordered merchandise is called a:

  1. A
    Letter of Credit
  2. B
    Laissez-faire
  3. C
    Inflation
  4. D
    None of the above

Solution & Step-by-step Explanation

A Letter of Credit (LC) is a financial document issued by an importer's bank guaranteeing that the seller/exporter will receive timely and complete payment, contingent on fulfillment of specified shipping and documentary requirements.

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An instrument that guarantees an exporter that the importer of their goods will pay promptly for the ordered merchandise is called a:
A
Letter of Credit
B
Laissez-faire
C
Inflation
D
None of the above

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