1.Letters of credit are essential to global trade.State True or False

a.A letter of credit is considered a contract and a negotiable instrument between the bank and beneficiary: _______

b.Some manufacturers use letters of credit as collateral to obtain loans to help finance the purchase of materials for manufacturing goods: _______

c.The letter of credit is mostly focused on payment terms and usually does not incorporate specific terms from the sales contract between the buyer and seller: _______

d.Banks issuing letters of credit usually do not do independent research to evaluate whether the seller's shipment to the buyer is in good order and should rely on the documentation presented to the bank: ________