A Green Clause Letter of Credit provides advances for:

Q. A Green Clause Letter of Credit provides advances for:
Answer: Pre-shipment and warehousing expenses
Notes: A Green Clause Letter of Credit extends the Red Clause by also allowing advances for warehousing and insurance of goods before shipment, in addition to pre-shipment expenses.

Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.

📌 Question Number: 10 in Bank Guarantees and Letters of Credit in the above course in App.