General Knowledge - Basic General Knowledge - Discussion


Guarantee to an exporter that the importer of his goods will pay immediately for the goods ordered by him, is known as

[A]. Letter of Credit (L/C)
[B]. laissezfaire
[C]. inflation
[D]. None of the above

Answer: Option A


No answer description available for this question.

Uma Sharma said: (Jan 2, 2011)  
The LC could be 'irrevocable' or 'revocable'. An irrevocable LC cannot be changed unless both the buyer and seller agree. Whereas in a revocable LC changes to the LC can be made without the consent of the beneficiary

Suman said: (Mar 6, 2011)  
What is laissezfaire?

Sundar said: (Mar 6, 2011)  
Laissezfaire: In economics, laissez-faire means allowing industry to be free of state intervention, especially restrictions in the form of tariffs and government monopolies. The phrase is French and literally means "let do", though it broadly implies "let it be" or "leave it alone."

Srinivas Patnaik said: (May 10, 2011)  
Laissezfaire means to leave alone, one must not interfere in others matter.

Srinivas Patnaik said: (May 10, 2011)  
It means to leave alone.

Shalini said: (May 16, 2011)  
The word 'Laissezfaire' is from which language.

Sundar said: (Jun 17, 2011)  
Letter Of Credit:

Letters of credit are often used in international transactions to ensure that payment will be received. Due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped.

Yeswanth said: (Aug 8, 2011)  
Can anyone explain it briefly that is the relation between question and answer..........

Monalisa said: (Sep 25, 2011)  
A letter of credit takes the form of an authorisation of payment sent by the importer's bank to the exporter's bank , and is cashed like a cheque .

Laissez Faire is a French term meaning "leave alone", The leading advocate of Laissez Faire was the English economists ADAM SMITH,who held that if the state allowed the economic force a free play , the 'invisible hand' of supply and demand would guide individual economic behavior towards the collective interest of all.

Narender Sharma said: (Jun 13, 2012)  
Letter of Credit is sent by the importer's bank to the exporter's bank. Exporter's bank will pay the invoice amount to the exporter on behalf of declaration of importer's bank. importer's bank will pay to the exporter's bank after a fix time--invoice amount+ interest for the fix time+ postal charges on behalf of the importer.

importer's bank will receive the same amount from the importer, after fix time (means it is assume that after fix time, importer surely consume and / or sell the goods.) then the importer will pay the same amount after fix time.

this is the term of the L/C

Md Helalauddin Ansari said: (May 7, 2013)  
A letter of credit takes the form of an authorization of payment sent by the importer's bank to the exporter's bank and is cashed like A CHEQUE.

Soniya said: (May 9, 2013)  
How is gold market fluctuation is related to share market?

Manisa said: (Jun 11, 2013)  
Letter of Credit L/c also known as Documentary Credit is a widely used term to make payment secure in domestic and international trade. The document is issued by a financial organization at the buyer request. Buyer also provide the necessary instructions in preparing the document.

The International Chamber of Commerce (ICC) in the Uniform Custom and Practice for Documentary Credit (UCPDC) defines L/C as:

An arrangement, however named or described, whereby a bank (the Issuing bank) acting at the request and on the instructions of a customer (the Applicant) or on its own behalf :

Is to make a payment to or to the order third party (the beneficiary) or is to accept bills of exchange (drafts) drawn by the beneficiary.

Authorised another bank to effect such payments or to accept and pay such bills of exchange (draft).

Authorised another bank to negotiate against stipulated documents provided that the terms are complied with.

A key principle underlying letter of credit (L/C) is that banks deal only in documents and not in goods. The decision to pay under a letter of credit will be based entirely on whether the documents presented to the bank appear on their face to be in accordance with the terms and conditions of the letter of credit.

Abi said: (Jan 4, 2014)  
Me also having doubt how gold market fluctuation relates to share market?

Raj said: (Apr 7, 2014)  
What is inflation?

Roja said: (Jul 17, 2014)  
Inflation is nothing but it is a general increase in prices.

Robin said: (Jan 16, 2015)  
It's called "LOC" Letter Of Credit.

T.Prashant said: (Nov 14, 2015)  
It is a agreement between seller and buyer.

Kishor said: (Feb 25, 2016)  
It's international terminology in business transaction.

Nini said: (Apr 16, 2016)  
I can't understand. Please, can anyone explain it clearly?

Martin said: (Feb 4, 2017)  
What is laissezfaire?

Sdm said: (Apr 30, 2017)  
Laissezfaire is a form of an economy where the government intervention is least.

Komal said: (Aug 18, 2017)  
Awesome explanation. Thanks.

Akankhit said: (Oct 30, 2018)  
Gold is one of the safest assets and so less risky compared to shares.

When the economic condition of the country deteriorates, the market values of shares fall as well and investors buy gold by selling shares. And when economic conditions improve investors switch to shares from gold.

The gold market is negatively correlated to share market.

Sarah said: (Nov 10, 2018)  
Thanks all for the given information.

Sarah said: (Nov 10, 2018)  
What is inflation?

Ziva said: (Dec 11, 2018)  
Can you explain about L/C clearly? Please.

Drhamza said: (Jun 1, 2022)  
I think "laissez faire" means "let it be".

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