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Question 12 (1 point) Bank drafts and letters of credit refer to: special pricing discounts offered to not-for-profit customers forms of payment for international purchases a method of price markdown used by financial institutions bid purchasing methods used by financial institutions
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Answer #1

When a cheque is drawn by the bank on its own fund , it is known as bank draft. The bank drafts are very commonly used for international transactions.

Letter of credit is a letter issued by a bank of the home country to the bank of the foreign country. This letter serves as a guarantee for the payments made to a specified person and under specified conditions. These are also very commonly used in international transactions.

So we can say that both bank drafts and letter of credit refer to forms of payment for international purchases. So option B is the correct answer.

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