alleryLetter of Credit is associated with
ABanking and trade finance
BPostal services
CStock exchange transactions
DProperty registration
Answer & Solution
Correct answer: A. Banking and trade finance
1. A Letter of Credit (LC) is issued by a bank guaranteeing payment to a seller on fulfilment of conditions.
2. It is widely used in international trade to mitigate buyer-seller risk.
3. It belongs to banking and trade finance, not postal or stock exchange operations.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII OCM, Ch 5 "Business Services", §5.2 ¶§5.2_
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