6. Which of the following is a correct statement about standby letter of credit?

a. A standby letter of credit is the same as a normal letter of credit, but it is used in a situation where the bank has agreed agree to release an agreed-upon sum of money (based on a documentary submission by one party) if the party who opened the instrument has not fulfilled certain obligations.

b. A standby letter of credit is a type of instrument that will undertake payment once the seller performs in accordance with the terms of the commercial contract.

c. A standby letter of credit is opened and issued in favor of a foreign government agency when a company has fulfilled all of their obligations under a foreign government contract

. d. A standby letter of credit is sometimes used as an unconditional instrument, meaning that the guarantor can delay payment to the beneficiary on simple demand.