ICICI Bank Interview Questions, Process, and Tips

A letter of credit is a financial document issued by a bank guaranteeing payment to a seller on behalf of a buyer.

• It is a payment method commonly used in international trade.

• The bank acts as an intermediary between the buyer and seller, ensuring that the seller will receive payment once the terms of the letter of credit are met.

• Letters of credit can be revocable or irrevocable, depending on whether they can be modified...read more

Leverage ratio is a financial metric that measures the proportion of a company's debt to its equity.

• Leverage ratio is calculated by dividing total debt by total equity.

• It indicates the level of financial risk a company is taking by using debt to finance its operations.

• A high leverage ratio means a company has more debt relative to equity, which can be risky in times of financial distress.

• A low leverage ratio indicates ...read more

UCP 600 governs LC (Letter of Credit).

• UCP 600 (Uniform Customs and Practice for Documentary Credits) is the set of rules that governs Letter of Credit transactions.

• It is created and maintained by the International Chamber of Commerce (ICC).

• UCP 600 provides a framework of rules and guidelines for banks to follow when issuing or receiving Letters of Credit.

• It ensures a common understanding and standardization in internat...read more