In international trade, documentary credit is also known as?

In international trade, there is a method of payment called documentary credit. This is also known as letters of credit. It is a financial instrument used by the buyer to guarantee payment to the seller. The buyer's bank issues a letter of credit to the seller's bank, promising to make the payment once the seller provides the necessary documents. These documents could include invoices, shipping documents, and inspection certificates. Once the seller presents the required documents, the buyer's bank will make the payment to the seller. This provides security for both parties involved in the trade. Therefore, the correct answer to this question is Option B: letters of credit.