When comparing a letter of credit and a banker's acceptance for financing international business transactions, a letter of credit

Multiple Choice

provides payment anywhere in the world. A banker's acceptance pays in areas in which the bank has a branch.

pays a specified amount if certain conditions are met Conversely, a banker's acceptance represents an unconditional promise to pay.

requires both the buyer and seller to deal in the same currencies. A banker's acceptance provides for currency exchange.

provides financing directly between buyers and sellers in different countries. A banker's acceptance provides an arrangement in which a bank serves as a broker taking title to the goods.