LETTER OF CREDIT
A commitment or promise letter, from a bank or importer, that is written to the seller, which guarantees the payment will be received on time and in the correct specified amount. In case the buyer fails to make the payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. The letters are frequently use in international transactions to ensure the payment will be made and received, which has become a very significant aspect of the international trade.
Although it has numerous types, the two basic types are revocable-credit letter of credit and irrevocable-credit letter of credit; the latter has two subtypes: confirmed irrevocable letter of credit and not-confirmed irrevocable letter of credit.
POPULAR TERMS
Shadow Banking System
The Shadow Banking System is the financial intermediaries that are present in the facilitation of the creating credit across the global financial s ...
Beneficiary Clause
A beneficiary clause is a provision in a life insurance policy or other investment vehicle such as an annuity or IRA that permits the policy owner ...
ASC X12
They develop the electronic data interchange or EDI for national and global markets. It was organized by the American National Standards Institute ...
To Be Announced - TBA
Forward mortgage-backed securities, which is passed through securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae in the TBA market. ...
Regulation Y
A Federal Reserve regulation which regulates corporate bank holding company practices as well as particular practices of state-member banks. Practi ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Digesting Financial Statements: Introduction
Financial statements open a window how healthy a company is (in terms of finances). This document presents the financial activities of a person or ...
The Concepts of Economics: Scarcity
To fully grasp the essence of what economics is, we must first understand the concept of scarcity along with the branches of study under economics ...
An Introduction to Insurance
Most people in the world own insurance. Insurance take a lot of forms such as medical insurance, automobile insurance, and the most common of them ...
Ethical Investing: Leaving an Ethical Imprint
After selecting the rightful ethical investments and making it work, it is about to decide how to disburse your assets after you die. You have two ...
Buying a Home: Obtaining a Homeowners Insurance
You are one step closer to acquiring your dream house, and you want to make sure it has substantial protection against any disaster or occurrence t ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 06:30 | Industrial Production | Jul | |
| 08:30 | Producer & Import Prices | Aug | |
| 11:01 | New Yuan Loans | Aug | |
| 14:30 | Consumer Price Index | Aug | |
| 14:30 | Consumer Price Index Core | Aug | |
| 14:30 | Common Core CPI | Aug | |
| 14:30 | Trimmed Core CPI | Aug | |
| 14:30 | Median Core CPI | Aug | |
| 14:30 | Manufacturing Shipments | Jul |
