Financial policy in exports - Financial documents - The bill of exchange

3 important questions on Financial policy in exports - Financial documents - The bill of exchange

What is acceptance in blank?

When acceptance is effected simply by signing and dating the bill.

Name two forms of endorsement

  1. Full endorsement
  2. Endorsement in blank

Why is the bill of exchange an important tool for financing?

  1. t can be traded without difficulty
  2. It leads its own legal life, separate from the underlying goods transaction
  3. It is possible to discount the bill with a bank
  4. Banks can re-discount a bill

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