Multiple choice

Negotiating bank is the bank which

  1. negotiates the preliminary contract of sale between the buyer and the seller

  2. negotiates documents delivered to bank and verifies the documents

  3. guarantees the payment by the issuing bank

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Negotiating bank is one of the main parties involved under Letter of Credit. Negotiating Bbnk, who negotiates documents delivered to bank by beneficiary of Letter of Credit. Negotiating bank is the bank who verifies documents and confirms the terms and conditions under Letter of Credit on behalf of beneficiary to avoid discrepancies

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