Revocable Documentary Credit as the name implies, the fundamental difference between this type of instrument and an irrevocable credit is that it can be amended or cancelled by the issuing bank (possibly on request from the applicant), without the consent of the beneficiary.
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- Master Agreement
Master Agreement is an agreement that provides participants in the private derivatives markets with the opportunity to establish the legal and credit ...
Endorsement writing on the back of an instrument (e.g. Bill of Exchange).
- Forward Swap
A forward swap involves an exchange of interest payments that does not begin until a specified future point in time.
Incentive-compatible having the incentives of both parties to a contract in alignment.
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- Parallel market
Parallel market refers to an unofficial foreign exchange market tolerated by a government but not officially sanctioned. The exact boundary between a ...
- Cash flow risk
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