Which of the following is an advantage of a letter of credit for an im

QUESTION

Which of the following is an advantage of a letter of credit for an importer?

A. The importer does not have to pay for the merchandise until the documents have arrived.

B. Obtaining pre-export financing becomes easier.

C. It helps the importer to get goods for a lower price.

D. It results in lower shipping costs.

E. The importer does not have to pay the third party a fee for facilitating the transaction.

ANSWER

A