Multiple choice

The bank who opens letter of credit is called

  1. issuing bank

  2. advising bank or the confirming bank

  3. negotiation bank or the nominated bank

  4. reimbursement bank

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Issuing bank is the bank who opens letter of credit. Letter of credit is created by issuing bank who takes responsibility to pay amount on receipt of documents from supplier of goods. (beneficiary under LC).