1. Which of the following is a primary difference between a letter of credit (L/C) and a documentary collection?

1. L/Cs are less expensive, less complicated and less secure than documentary collections
2. Under a documentary collection, the bank does not guarantee payment to the seller
3. Under a L/C, documents against payment use a time draft, which must be accepted by the importer before the collecting bank may release the documents
4. Most documentary collections are irrevocable, meaning that the documents cannot be canceled or amended without the agreements of all involved parties