Which document usually underlies an international banker’s acceptance?

Q: Which document usually underlies an international banker’s acceptance?

Letter of credit - An international banker’s acceptance is a time draft that becomes a financial instrument when accepted by a bank. It is commonly used in trade finance. This acceptance is generally created under a Letter of Credit (LC) issued by a bank, which guarantees payment to the exporter when the terms of the credit are fulfilled.

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Letter of credit - An international banker&rsquo;s acceptance is a time draft that becomes a financial instrument when accepted by a bank. It is commonly used in trade finance. This acceptance is generally created under a Letter of Credit (LC) issued by a bank, which guarantees payment to the exporter when the terms of the credit are fulfilled.

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