Multiple choice

Reimbursing bank is the bank that

  1. reimburses the seller

  2. reimburses the negotiating/paying or confirming bank

  3. reimburses the buyer on the goods being found defective

  4. reimburses its branch
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Reimbursing bank is one of the parties involved in an Letter of Credit. Reimbursing bank is the party who authorised to honor the the reimbursement claim of negotiation/ payment/ acceptance.

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