American Bankers Association CRCM Exam - Topic 1 Question 24 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 24
Topic #: 1

[All CRCM Questions]

First National Bank opened a letter of credit in favor of ABC Co., a U.S. company, for ABC's sale of goods to Country X, a foreign country that participates in a boycott. The letter of credit contains no boycott provisions, but First National Bank knows that ABC Co. has agreed to supply a certification to Country X that ABC has not dealt with any blacklisted firms as a condition of receiving the letter of credit in its favor. What should First National Bank do?

AImplement the letter of credit because there is no boycott language on its face

BRequire ABC to indemnify the bank against any potential loss for participation in a boycott

CNot implement the letter of credit

DHave the letter of credit confirmed by a bank in Country X

Show Suggested Answer

Suggested Answer: C

by Eun at May 09, 2022, 04:44 AM

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5 months ago

I think the translation of inside source addresses is related to option A, but I'm not entirely sure about the subnet specifics.

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