Question
A loan facility extended for import of goods or
services, is called as ________Solution
A buyer's credit is a loan facility extended to an importer by a bank or financial institution to finance the purchase of capital goods or services and other big-ticket items. Buyer’s credit is a very useful mode of financing in international trade, since foreign buyers seldom pay cash for large purchases, while few exporters have the capacity to extend substantial amounts of long-term credit to their buyers. A buyer’s credit facility involves a bank that can extend credit to the importer, as well as an export finance agency based in the exporter's country that guarantees the loan. Export credit is a loan facility extended to an exporter, by a bank, in the exporter's country. Trade credit is the credit extended by a supplier to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organizations as a source of short-term financing. Import finance also helps to bridge the gap between the payment and receiving of goods imported. Letter of Credit is one of the forms of import finance which is payment mode used in the International Trade between importer and exporter to cover third-party credit risk. What this means is that if the importer defaults, his bank will have to pay on his behalf. Import finance differs from the Buyers credit as buyers credit is a funding mechanism used by importer to funds his transaction and is a on-balance sheet loan for the bank while letter of credit is an off-balance sheet non-fund based form of financing.
RBI increased the CRR requirement to 4.5% in May 2022. This action is expected to ________
Which of the following statements accurately reflects the procedural requirements for the constitution of the National Company Law Appellate Tribunal as...
Which of the following is not a Pillar concept of Basel accords?
In the context of asymmetric information, what is 'screening'?
What is the sub-target for lending to Small and Marginal Farmers (SMFs) under priority sector lending (PSL) norms as revised in March 2025 ?
Calculate the Proprietary Ratio of the company?
Which of the following statements is/are correct in regards to The Planning Commission?
- Established in March 1950
Consider the following statements regarding the history of bullion:
1) The use of bullion dates back to ancient civilizations such as the Egyp...
Why is ethics crucial in professional settings?
ABC Ltd stated the reason of poor performance of the company was the unsystematic risks faced by it in the current financial year. Which of the followin...