Question

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

Answer 1

The UCP 500 is the international standard for interpreting letters of credit (L/Cs), which ensures that payment will be received in international trade.

Step-by-step explanation:

The international standard by which letters of credit (L/Cs) are interpreted is known as the UCP 500. Letters of credit are used in international trade to guarantee that payment will be received. The Uniform Customs and Practice for Documentary Credits, abbreviated as UCP, is a set of rules on the issuance and handling of letters of credit. The UCP is endorsed by the International Chamber of Commerce (ICC) and is frequently updated to reflect current trade practices. The version referred to as UCP 500 was in effect prior to the current version, which is UCP 600.