&8226;Read the article about letter of credit.&8226;For each question 31--40, write one word in CAPITAL LETTERS on your Answer Sheet.General View of Letter of CreditsThe letter of CREDIT here referred (31) in this chapter is the commonly-used documentary letter of credit, the importance of (32) is to be discussed in the following.A Letter of Credit is the most important method in international (33) . In domestic sales, the seller sometimes can deliver the goods with one (34) and get the payment with the other. In international sales, however, this case is out of (35) question. It takes a long time for the goods in (36) to reach the destination. The long period of transit and the different locations of the seller and the (37) make it difficult to exchange goods for money at the same time.Usually, the seller will not be so foolish as to deliver the goods first before he can get the payment; likewise, the buyer will not be so foolish as to pay money first before he receives the goods in good (38) . Then it seems that the international transaction is not possible. The contradictory interests of the seller arid the buyer that are likely to obstruct the international transaction can be resolved by adopting modes of payments which can give (39) to the seller and the buyer. The widely accepted way is to use documentary letter of credit with the bank taking part as an intermediary. The documentary letter of credit is one of the safest payment modes available to the seller. In (40) , this is a way of paying the seller that imparts some degree of security to both parties.(31)
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