Insolvent is the condition when one is unable to pay one’s debt obligations when due.
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- Bank to Bank Payment
Bank to Bank Payment is a transfer of funds between remitter and beneficiary via the banking system.
- Managed float
Managed float is an exchange rate regime in which countries attempt to influence their exchange rates by buying and selling currencies (also called a dirty float).
- Required reserve ratio
Required reserve ratio is the fraction of deposits that the fed requires is kept as reserves.
- Self-liquidating theory
Self liquidating (real bills doctrine) theory is a traditional and conservative banking theory. The main theme of this theory...
- Counter purchase
Counter purchase refers to exchange of goods between two parties under two distinct contracts expressed in monetary terms.
- Interbank Market
If a bank begins to experience a shortage in a particular foreign currency, it can purchase that currency from other banks. This trading between banks occurs in what is often referred to as the interbank market.
Quotas is the restrictions on the quantity of foreign goods that can be imported.