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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Tariffs is the taxes on imported goods.
Safekeeping is a bank’s practice of holding precious metals, securities, and other valuables owned by its customers in secure vaults.
- Monetary neutrality
Monetary neutrality is a proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in
- Basis Point
Basis Point is one-hundredth of one percentage point (i.e. 0.01%), normally used for indicating spreads or cost of finance.
- Documents against acceptance
Documents against acceptance is a situation in which the buyer’s bank does not release shipping documents to the buyer until the buyer has accepted (signed) the draft.
- Profit maximization
Profit maximization means to increase profit of the firm.
- Matched sale-purchase transaction
Matched sale-purchase transaction is an arrangement whereby the Fed sells securities and the buyer agrees to sell them bank to the Fed in the near future; sometimes called a reserve repo.