What is a letter of credit? a. An instrument issued by a bank at ...

[frankwu]

What is a letter of credit?
 a. An instrument issued by a bank at the request of a buyer in which the bank promises to pay a specified amount of money on presentation of documents stipulated in the letter.
  b. It is a letter which states that after the seller ships the goods, the shipping documents and the draft demanding payment should be presented to the importer through banks acting as the seller's agent.
  c. It is given to shipping companies who have a line of vessels.
  d. An instrument of currency issued by a foreign government to the exporter.

Question 2

All of the following are opportunities for supplier cost reductions except _____.
 a. process capability
 b. plant utilization
 c. learning-curve effect
 d. ability to vote out the supplier's labor union
  e. management capability

[lin77x]

Answer to Question 1

A

Answer to Question 2

d