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  • Question
  • What is ILOC (Irrevocable Letter Of Credit) ?


  • Correct Answer
  • It is a letter of credit or a contractual agreement between financial institute (Bank) and the party to which the letter is handed The ILOC letter cannot be cancelled under any circumstance and, guarantees the payment to the party It requires the bank to pay against the drafts meeting all the terms of ILOC It is valid upto the stated period of time For example, if a small business wanted to contract with an overseas supplier for a specified item they would come to an agreement on the terms of the sale like quality standards and pricing, and ask their respective banks to open a letter of credit for the transaction The buyer?s bank would forward the letter of credit to the seller?s bank, where the payment terms would be finalized and the shipment would be made 


  • Accounting and Finance problems


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    • 1. What is SLR rate?
    • Discuss
    • 2. What opportunities does a financial downturn present to financiers?
    • Discuss
    • 3. Managerial accounting information is generally prepared for

    • Options
    • A. creditors
    • B. regulatory agencies
    • C. shareholders
    • D. managers
    • Discuss
    • 4. What is cash budget ?
    • Discuss
    • 5. Goods that are excludable include both

    • Options
    • A. public goods and common resources
    • B. common resources and private goods
    • C. natural monopolies and public goods
    • D. private goods and natural monopolies
    • Discuss
    • 6. What are the different types of Loans offered by banks?
    • Discuss
    • 7. What is ?Crossed Cheque? ?
    • Discuss
    • 8. Bad loans in banking terminology are generally known as

    • Options
    • A. NPA's
    • B. Prime loans
    • C. BPO's
    • D. Prime Assets
    • Discuss
    • 9. Job cost sheets constitute the subsidiary ledger for the
    • Discuss
    • 10. All of these are exemptions from local real property taxes EXCEPT :

    • Options
    • A. Low-income homeowner's exemption
    • B. Homeowner's exemption
    • C. Veteran's exemption
    • D. Senior citizen's tax exemption
    • Discuss


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