General Knowledge - Basic General Knowledge - Discussion

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.

Can anyone explain it briefly that is the relation between question and answer..........

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.

The word 'Laissezfaire' is from which language.

It means to leave alone.

Laissezfaire means to leave alone, one must not interfere in others matter.

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."

What is laissezfaire?

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