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GCE Commerce 1990 Question 53

Question 53

Foreign Trade Documents

Which of the following documents may be used when an importer requires a longer period of credit before settlement?

  1. A.Letter of Credit
  2. B.Documentary credit
  3. C.Bill of Lading
  4. D.Sight Draft
  5. E.Bill of Exchange
Show the answer and explanation

Answer: E (Bill of Exchange)

Explanation

A (term) bill of exchange lets the importer pay at a future date, e.g. in 90 days.