[Solved] Which of the following best defines the term 'Letter of Credit' as used frequently in bank transactions? [SBI PO 1991]

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

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