Guarantee to an exporter that the importer of his goods will pay immediately for the goods ordered by him, is known as
- ALetter of credit
- BLaissez-faire
- CInflation
- DNone of the above
Solution & Step-by-step Explanation
A Letter of Credit (LC) is a financial guarantee document issued by an importer's bank ensuring that the exporter will receive the full and timely payment for goods ordered, provided specific documentation and terms are met.