1. TASK: Insert the appropriate word in the text below:
arranges - confirming - intermediary - valid
security - several - unsuitable - issuing
Confirmed and unconfirmed letters of credit
When a buyer ________ a letter of credit they usually do so with their own bank, known as the________ bank. The seller will usually want a bank in their country to check that the letter of credit is ________.
For extra security, the seller may require the letter of credit to be ‘confirmed’ by the bank that checks it. By ________ the letter of credit, the second bank agrees to guarantee payment even if the issuing bank fails to make it. So a confirmed letter of credit provides more ________ than an unconfirmed one.
Revolving letters of credit
A single revolving letter of credit can cover ________ transactions between the same buyer and seller.
Back-to-back letters of credit
Back-to-back letters of credit may be used when an ________ is involved but a transferable letter of credit is ________.
2. CHECK YOUR SPEAKING
|
arranges |
ərendʒəz |
організовує |
|
confirming |
kənfərmɪŋ |
підтверджує |
|
intermediary |
ɪntərmidiɛri |
посередник |
|
issuing |
ɪʃuɪŋ |
випускаючий |
|
security |
sɪkjʊrəti |
безпека |
|
several |
sɛvrəl |
декілька |
|
unsuitable |
ənsutəbəl |
невідповідний |
|
valid |
væləd |
дійсний |
3. SEE CORRECT ANSWER
Confirmed and unconfirmed letters of credit
When a buyer arranges a letter of credit they usually do so with their own bank, known as the issuing bank. The seller will usually want a bank in their country to check that the letter of credit is valid.
For extra security, the seller may require the letter of credit to be ‘confirmed’ by the bank that checks it. By confirming the letter of credit, the second bank agrees to guarantee payment even if the issuing bank fails to make it. So a confirmed letter of credit provides more security than an unconfirmed one.
Revolving letters of credit
A single revolving letter of credit can cover several transactions between the same buyer and seller.
Back-to-back letters of credit
Back-to-back letters of credit may be used when an intermediary is involved but a transferable letter of credit is unsuitable.
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в підручнику “Practical Financial English”
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