Question

Which statement is true about letters of credit?

OA. They are described in Article 4A of the UCC.
B. They are frequently used by new businesses.
C. They are issued by businesses to banks.
OD. They are used only for domestic transactions

Answer 1

Guessing it’s C. Not entirely sure!!

Answer 2

B. They are frequently used by new businesses.

Step-by-step explanation:

Letters of credit are frequently used by new businesses because they are new and can be a financial risk investment because of how unstable they can be when starting off. Letters of credit guarantees the safety of the payments to another a bank.