Bank Guarantees and Letters of Credit

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Which of the following parties is responsible for advising a Letter of Credit to the beneficiary?

Applicant

Issuing Bank

Advising Bank

Confirming Bank

Which type of Letter of Credit can be amended or revoked by the issuing bank at any time without prior notice to the beneficiary?

Irrevocable Letter of Credit

Revocable Letter of Credit

Revolving Letter of Credit

Back-to-Back Letter of Credit

What is a Back-to-Back Letter of Credit primarily used for?

Direct transactions between buyer and seller

Where the original beneficiary needs to issue a secondary LC to a supplier

As a substitute for financial guarantees

For multiple shipments under the same LC

Which clause in a Letter of Credit allows the beneficiary to avail an advance before shipment of goods?

Green Clause

Red Clause

Deferred Payment Clause

Confirmed Clause

Which type of Letter of Credit allows the original beneficiary to transfer part or all of the credit to another party?

Standby Letter of Credit

Confirmed Letter of Credit

Transferable Letter of Credit

Acceptance Letter of Credit