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When a Documentary Collection as a Method of Payment Is

Question 8

Multiple Choice

When a documentary collection as a method of payment is used in international transactions,


A) the importer's bank will pay immediately if it is a document against acceptance
B) the importer's bank will pay on the specified date if it is a document against payment
C) it is less expensive than a letter of credit
D) it is often used with shipments by air
E) it is commonly used when the parties are not familiar with each other

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