Multiple choice

In which of the following types of letters of credit are the negotiations of bills by the beneficiary allowed again and again within a given time limit?

  1. Revolving LC

  2. Irrevocable LC

  3. Back to back LC

  4. Red clause LC
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A Correct answer
Explanation

A revolving letter of credit is a special letter of credit which is structured in a way so that it revolves either in value or in time, covering multiple shipments over a long period of time under single letter of credit.

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