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Which statement is true about letters of credit? OA. They are described in Article 4A of the UCC. B. They are frequently used by new businesses. C. They are issued by businesses to banks. OD. They are
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21 votes
21 votes
Which statement is true about letters of credit?

OA. They are described in Article 4A of the UCC.
B. They are frequently used by new businesses.
C. They are issued by businesses to banks.
OD. They are used only for domestic transactions

User Oleg Matei
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2 Answers

13 votes
13 votes
Guessing it’s C. Not entirely sure!!
User Gulshan Aggarwal
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3.1k points
8 votes
8 votes

Answer:

B. They are frequently used by new businesses.

Step-by-step explanation:

Letters of credit are frequently used by new businesses because they are new and can be a financial risk investment because of how unstable they can be when starting off. Letters of credit guarantees the safety of the payments to another a bank.

User Prince Bhatti
by
2.9k points
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