1B 2F 3J 4G 5A

6E 7C 8D 9H 10I

Reading:
b-d-c-a-k-i-e-h-g-f

Extension activities
1. Revocable LC: allows me to amend or cancel without prior notice to the sellers.
As the revocable letter of credit can be amended, canceled, or revoked at any time
and it cannot be confirmed.
2. Red Clause LC: These letters are commonly used by beneficiaries who act as
purchasing agents for buyers in another country.
3. Red Clause LC: allows for the seller to obtain pre-shipment finance, although
available credit is usually only part of the estimated value
4. Transferable LC: allows the first beneficiary to transfer some or all of the credit to
another party, which creates a secondary beneficiary.
5. Irrevocable LC: The terms and conditions set forth in an irrevocable letter of credit
are fixed, and can only be changed with the express agreement of all parties
involved. These letters help eliminate concerns that unknown buyers won't pay for
goods they receive or that unknown sellers won't ship goods that have been paid for.
6. Back to back LC: Because the department wants to buy furs from Russia, but it
doesn’t want the Russian to know it is buying, it is necessary to have an agent.