Letter of credit in economics and finance

5K views Feb 4, 2024

Hello everyone! Welcome to today's lesson on letter of credit in economics and finance. A letter of credit, often abbreviated as LC, is a financial document that serves as a guarantee of payment between a buyer and a seller. It is commonly used in international trade, where parties may not have established a trust relationship yet. The letter of credit ensures that the seller will receive payment for their goods or services, while the buyer can be confident that the payment will only be made if the agreed-upon conditions are met.

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