Multiple choice

The advising bank’s responsibility is to

  1. inform the issuing bank as to whom to issue the letter of credit

  2. advise the buyer the dispatch of documents by the seller

  3. inform the beneficiary/seller about the letter of credit

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Advising bank is another party involved under Letter of Credit. Advising bank, as a part of letter of credit, takes responsibility to communicate with necessary parties under letter of credit and other required authorities. The advising bank is the party who sends documents under Letter of Credit to opening bank.

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