Question
Which of the following best describes the function of a red clause letter of credit? a. To indicate to the exporter that a problem has
Which of the following best describes the function of a red clause letter of credit?
a. | To indicate to the exporter that a problem has occurred with the importer's finance instruments, and signal the need to renegotiate. | |
b. | To highlight specific terms struck between the importer and the exporter that are outside of the standard negotiations used with letters of credit. | |
c. | To authorize the advising bank to make advances to the exporter against the guarantee of the importer's bank. | |
d. | To indicate the exact number of times a revolving documentary letter of credit may be renewed. |
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