The term Acceptance means an undertaking by the drawee (who then becomes the “acceptor”), of a Bill of Exchange to pay to the person presenting the bill (called the holder in due course) the face value of the bill on the due date.
More from this Section
- Federal funds rate
Federal funds rate is the interest rate on overnight loans of deposits at the Federal Reserve.
Principal is the party (exporter) entrusting the handling of a collection to a bank.
- Without Recourse
Without Recourse is the purchase and discounting of trade documentation issued by an exporter under, and in full compliance with
- Rational expectations
Rational expectations is the expectations that reflect optimal forecasts (the best guess of the future) using all available information.
- American option
American option is an option that can be exercised on or any time before the date of expiry.
Cosigner is a person obligated to support the repayment of a loan by a borrower who either has no credit record or has such a poor track
- Euro-Commercial paper (ECP)
Euro-Commercial paper (ECP), like commercial paper issued in domestic markets around the world, is a short-term debt obligation of a corporation or bank.