E-commerce:
Length: 322 words (1.2 pages)
Rating: Red (FREE)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1. THE CREATION OF A BANKERS ACCEPTANCE
Acceptances arise most often in connection with international trade: U.S. imports
and exports and trade between foreign countries.1 An American importer
may request acceptance financing from its bank when, as is frequently the case
in international trade, it does not have a close relationship with and cannot
obtain financing from the exporter it is dealing with. Once the importer and
bank have completed an acceptance agreement, in which the bank agrees to
accept drafts for the importer and the importer agrees to repay any drafts the
bank accepts, the importer draws a time draft on the bank. The bank accepts
The author, former assistant economist at the Federal Reserve Bank of Richmond, would like
to thank Lawrence Aiken of the Federal Reserve Bank of New York, Walker Todd of the
Federal Reserve Bank of Cleveland, and Tim Cook and John Walter of the Federal Reserve
Bank of Richmond. The views expressed in this article are those of the author and do not
necessarily reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve
System.
1 Although acceptances may be created by entities other than banks?such acceptances are
referred to as ?trade acceptances??the term ?acceptance? in this article will refer to bankers
acceptances only.
Federal Reserve Bank of Richmond Economic Quarterly Volume 79/1 Winter 1993 75
76 Federal Reserve Bank of Richmond Economic Quarterly
the draft and discounts it; that is, it gives the importer cash for the draft but
gives it an amount less than the face value of the draft. The importer uses the
proceeds to pay the exporter.
The bank may hold the acceptance in its portfolio or it may sell, or rediscount,
it in the secondary market. In the former case, the bank is making a
loan to the importer; in the latter case, it is in effect substituting its credit for
that of the importer, enabling the im
Search for: [take pride] [two books] [chat rooms] [abigail williams]
|
Important Note: If you'd like to save a copy of the
paper on your computer, you can COPY and PASTE it into your word
processor. Please, follow these steps to do that in Windows:
1. Select the text of the paper with the mouse and press Ctrl+C. Azete.com (the "Web Site") is produced by the "Company". The contents of this Web Site, such as text, graphics, images, audio, video and all other material ("Material"), are protected by copyright under both United States and foreign laws. The Company makes no representations about the accuracy, reliability, completeness, or timeliness of the Material or about the results to be obtained from using the Material. You expressly agree that any use of the Material is entirely at your own risk. Most of the Material on the Web Site is provided and maintained by third parties. This third party Material may not be screened by the Company prior to its inclusion on the Web Site. You expressly agree that the Company is not liable or responsible for any defamatory, offensive, or illegal conduct of other subscribers or third parties. The Materials are provided on an as-is basis without warranty express or implied. The Company and its suppliers and affiliates disclaim all warranties, including the warranty of non-infringement of proprietary or third party rights, and the warranty of fitness for a particular purpose. The Company and its suppliers make no warranties as to the accuracy, reliability, completeness, or timeliness of the material, services, text, graphics and links. For a complete statement of the Terms of Service, please see our website. By obtaining these materials you agree to abide by the terms herein, by our Terms of Service as posted on the website and any and all alterations, revisions and amendments thereto. |
cans in three ways; there would be less crowding in jails, it would create more tax income, and it would cut down the amount of crime in the country. First, marijuana becoming legalized would be beneficial to the United States because it would reduce the crowding in jails. In 1998 alone nearly 750...standable if it?s to do with inflicting pain on other living creatures. Animals, like humans, feel pain. One large factor of the unnecessary deaths of creatures is animal experimentation. Seventy million animals are killed annually in U.S. laboratories. Animal experimenters attempt to recreate hu... Normalerweise spiele ich mit meinen Freunden nach schule. Ich auch spiele am Sonnstag. Wenn es Regnen ist spiele ich im Sportzentrum aber man muss zwei pfund bezahlen. Um gut zu sein, muss man sehr viel trainieren. Mein Lieblingsbasketballspieler ist Aaron Owens. Er ist in der be...n? to them when they speak, others think of it as showing gratitude for doing them favors. But lets really define what respect really means. ?Showing acknowledgement for some ones superiority in a certain field? is a quote from a famous philosopher. And to be honest, I?ll show respect to someone th...