Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?
Correct answer: A. letter of Credit
- A. letter of Credit
- B. Letter of expression
- C. Demand draft
- D. Letter of intent
Explanation
A letter of credit, including a traveller’s letter of credit, authorizes its holder to obtain payment through an overseas branch or correspondent bank. A demand draft is a payment order, not the described authorization document.
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