信用证 (xìn yòng zhèng) — letter of credit (L/C), a financial instrument used in international trade to guarantee payment

Definition

A letter of credit (L/C): a bank-issued guarantee of payment in international trade, so the seller ships first and is still sure of getting paid. Used in cross-border import/export contracts.

noun
letter of credit (L/C), a financial instrument used in international trade to guarantee payment
Measure word · 份

Examples

  • 信用证。
    Chū kǒu shāng yāo qiú mǎi fāng kāi jù yì zhāng xìn yòng zhèng.
    The exporter asked the buyer to open a letter of credit.
  • 信用证。
    Zhè fèn xìn yòng zhèng de yǒu xiào qī zhǐ yǒu sān gè yuè.
    This letter of credit is valid for only three months.
  • 信用证。
    Jìn kǒu shāng bì xū àn xìn yòng zhèng tiáo kuǎn zhǔn bèi dān jù.
    The importer must prepare the documents according to the terms of the letter of credit.

Origin

Compound word
构词法gòucífǎ
偏正piānzhèngModifier + head

The first part narrows down the second: it says what kind of thing the head is.

信用credit
信xìntrust用yònguse
联合Side by side
证zhèngdocument

信用 means credit and 证 means document, so the whole names a credit document.

Characters in this word

Most characters — around four in five — are built this way: one part hints at the meaning, the other at the pronunciation.

Meaning part形符xíngfú
言言yánwords
Sound part声符shēngfú
人
人rén信xìn
The sound has drifted apartThe sound part was a clue two thousand years ago — it often still helps, but not always.

信 pairs 人 as the sound part with 言 (words) as the meaning part.

Open 信 →

Most characters — around four in five — are built this way: one part hints at the meaning, the other at the pronunciation.

用 was formed by adding a handle to an earlier form.

Open 用 →

Most characters — around four in five — are built this way: one part hints at the meaning, the other at the pronunciation.

This origin belongs to the traditional form 證; 证 is its simplified writing.

Meaning part形符xíngfú
言言yán
Sound part声符shēngfú
登
登dēng證zhèng
Close in sound todayThe sound part was a clue two thousand years ago — it often still helps, but not always.

The traditional form 證 pairs 言, a words/speech part, with 登 as a sound clue; the simplified 证 is a later shorthand.

Open 证 →

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