Q. Which of the following best defines the term 'Letter of Credit' as used frequently inbank transactions? [SBI PO 1991] (Solved)
1. An order from a bank to another bank abroad authorising the payment of a particular amount to a person named in the letter
2. An unconditional undertaking given by a bank ensuring the payment of a particular amount to the drawee at a given date
3. Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank
4. Statement showing outstanding"- deposits and credits of a bank for a particular period
- c. Letter by a bank to a person stating the terms and conditions of the loan sanctioned to him by the bank