Which of these is used as promise from a bank to make a payment assuming certain conditions are met

Q. Which of these is used as promise from a bank to make a payment assuming certain conditions are met?
Answer: Letter of Credit
Notes: A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.

This Question is Also Available in:

हिन्दी

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: 9 in 31 - Lending Operations in the above course in App.