Master the Art of Letter of Credit Management
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Questions and Answers

What is the benefit of reviewing letters of credit early?

  • It increases the chances of getting paid under the letter of credit (correct)
  • It reduces the amount of paperwork needed
  • It guarantees payment under the letter of credit
  • It eliminates the need for a letter of credit

    • What is the ideal time to review a letter of credit?

  • None of the above
  • Before the transaction is completed (correct)
  • After the transaction is completed
  • At the same time the transaction is completed

    • What is the problem with waiting until the last minute to review a letter of credit?

  • It is more difficult to find discrepancies
  • It increases the amount of paperwork needed
  • It guarantees payment under the letter of credit
  • There may not be enough time to fix any problems (correct)

    • What percentage of letters of credit have discrepancies?

    <p>80-90%</p> Signup and view all the answers

    What is the issue with compliance when it comes to letters of credit?

    <p>It is difficult to comply with all the documentary requirements in the letter of credit</p> Signup and view all the answers

    What is the best way to ensure compliance with all the documentary requirements in a letter of credit?

    <p>Send copies of the letter of credit to every department involved in the transaction</p> Signup and view all the answers

    What happens if a given document cannot be produced at the correct time in a letter of credit transaction?

    <p>The transaction is put back on open-account terms</p> Signup and view all the answers

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