General Knowledge - Basic General Knowledge - Discussion
Discussion Forum : Basic General Knowledge - Section 1 (Q.No. 15)
15.
Guarantee to an exporter that the importer of his goods will pay immediately for the goods ordered by him, is known as
Discussion:
29 comments Page 2 of 3.
Nini said:
9 years ago
I can't understand. Please, can anyone explain it clearly?
Kishor said:
10 years ago
It's international terminology in business transaction.
T.prashant said:
10 years ago
It is a agreement between seller and buyer.
Robin said:
1 decade ago
It's called "LOC" Letter Of Credit.
Roja said:
1 decade ago
Inflation is nothing but it is a general increase in prices.
Uma Sharma said:
1 decade ago
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
Abi said:
1 decade ago
Me also having doubt how gold market fluctuation relates to share market?
Manisa said:
1 decade ago
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.
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.
Soniya said:
1 decade ago
How is gold market fluctuation is related to share market?
Md helalauddin ansari said:
1 decade ago
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.
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