General Knowledge - Basic General Knowledge - Discussion

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

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.

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

It means to leave alone.

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?