Kizspy | Question: 31
(Choose 1 answer)
This type of letter of credit is a new credit opened on the basis of an already existing, nontransferable credit. It
is used by traders to make payment to the ultimate supplier. A trader receives a documentary credit from the
buyer and then opens another documentary credit in favor of the ultimate supplier. What is this?
A. A transferable credit
B. Standby credit
C. A red clause credit
D. Back-to-Back Credit
