Suppose that an issuing bank pays on documents that are conforming to the requirements of the letter of credit, but the seller has shipped worthless goods to the buyer. Which of the following statements, if any, are true?
A) As long as the documents strictly comply with the letter of credit requirements, the bank will not have to reimburse the buyer.
B) If there is fraud in the transaction, the bank will have to reimburse the buyer and seek its remedies against the seller.
C) The strict compliance principle insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract.
D) A and C.
C
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Answer the following statement true (T) or false (F)
The ____________________________ strategy usually consists of a period where the new name is featured together with the old name.
a. Fade-out b. Fade-in c. Summary axing d. Fade-in/Fade-out
Futures trading features daily _(i)_ in cash and _(ii)_. _(i)_ _(ii)_
a. closing marking-to-market b. resettlement closing c. resettlement marking-to-market d. swapping marking-to-market.
TropiKana Inc., a U.S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant
If the interest rate is 5.50% per year and the Euro depreciates against the dollar from $1.40/€ at the time the loan was made to $1.35/€ at the end of the first year, how much interest will TropiKana pay at the end of the first year (rounded)? A) $55,000 B) €74,250 C) $74,250 D) $77,000