- •Unit I the bank of england
- •From a National to a Central bank
- •1. Key terms
- •Answer the following questions in your own words:
- •Fill in the blanks in this passage, using words from the list given below:
- •Case Study.
- •Функції Банку Англії
- •V. Opposites and synonyms.
- •VI. Join the halves.
- •VII. Summarize the following passage in about 100 words and an appropriate
- •VIII. Write a memorandum.
- •The court of directors
- •The executive
- •IX. Meanings.
- •X. Make comments on the following charts, paying attention to the information given below
- •XI. Complete the following sentences using your own words:
- •XII. Study the text given below and explain in English the meaning of the following words and word combinations: a Stable Financial System
- •Issue Department
- •The Value of Money
- •Interest Rates
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Summarize the following text in English in about 50 words:
- •V. Join the halves.
- •VI. Meanings.
- •VII. Complete the sentences using your own words:
- •Unit II
- •The uk money and banking markets
- •The uk banking market
- •The British banking market structure
- •Key terms
- •Answer the following questions in your own words:
- •Memorize the following terms and use them in your own sentences:
- •Find in the text the following words and word combinations and translate the sentences in which they are used.
- •V. Synonyms and antonyms. Complete the following table:
- •VI. Fill in the blanks with prepositions and translate the text:
- •VIII. Translate the following sentences into English:
- •IX. Complete the text using these words: Types of Bank
- •X. Summarize the following text in English in about 100 words: комерційні банки: IX види та операції
- •XI. Study and translate the following scheme into English:
- •XII. How much do you know about banks? Decide if these statements are true or false.
- •The financial systeм Nature
- •II. Answer the following questions:
- •III. Fill in the blanks. Rewrite the passage filling in the blanks from the list of words below.
- •IV. Match the Ukrainian and English equivalents:
- •V. Read the passage below. Explain the meanings of the words and phrases which have been highlighted:
- •VI. Render the following text into English: Трансформаційні функції комерційних банків
- •VII. Choose the correct alternative to complete each sentence:
- •VIII. Complete the following sentences using words and word-combinations given below:
- •IX. Translate the following words and word-combinations into English and insert them in the sentences given below.
- •X. The following famous quotations are about credit and borrowing and lending. Can you complete them:
- •In business, one way to obtain ……… is to create the impression one already has it.
- •XI. Translate the following text into English without using a dictionary:
- •XII. Discussion topics:
- •XIII. As we have already seen, a bill of exchange might not be honoured, or the order might be cancelled. So, a letter of credit is a more binding method of payment. Documentary Credits
- •Unit III
- •Commercial banks
- •Retail and wholesale activities of financial institutions
- •I. Key terms
- •II. Answer the following questions:
- •III. Find in the text the following word combinations and translate the sentences in which they are used:
- •IV. Find English equivalents to the word combinations given below:
- •V. Complete the table:
- •VI. Fill in the blanks from the list of words below the text:
- •VII. Answer the following comprehension questions based on the text:
- •VIII. Sum up what the following text said about:
- •IX. Complete the sentences using your own words:
- •X. Complete the text using these words:
- •XI. Read the text and the dialogue following it. Find answers to the questions given below. Reproduce the dialogue with your partner. The structure of a Bank
- •The Dialogue
- •XII. Using the information in the text, say what is true and what is false. Correct the false sentences.
- •XIII. Fill in the blanks with proper words or phrases:
- •XV. Read and translate the text. Describe the bank’s management hierarchy. Study the chart following the text. Service operations of a small bank
- •Organization Chart for a Small Community Bank
- •XVI. Match the words above with the definitions which follow:
- •XVII. Fill the spaces with words from the box. Translate the text into Ukrainian:
- •XVIII. Render the following text into English:
- •I. Key terms:
- •II. Answer the following questions:
- •IV. Study the following text and translate the table into Ukrainian: The balance sheets of the retail banks
- •V. Translate the text in writing: Savings banks and the National Giro
- •VI. Reproduce the main idea of the text: The Bankers’ Clearing House
- •VII. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •VIII. Find in the text the terms which match the following explanations:
- •IX. Scan the text. Translate it into Ukrainian. Don’t use the dictionary:
- •X. Join the halves.
- •XI. Translate the text in writing: The Bankers' Clearing House
- •XII. Read and translate the following text: Easy money
- •XIII. Match these terms with their definitions:
- •XIV. Replace the underlined items with words or phrases from the text that have a similar meaning.
- •XV. Choose, the best explanation for each of these words or phrases from the text:
- •XVI. Find a word or phrase in the text that has a similar meaning.
- •XVII. Match the first half of each sentence with the most appropriate second half. Notice the words are used in each sentence to mark a contrasting idea. (These words are in italics.)
- •If possible, find the annual results of a bank in your country and report on its profitability.
- •XVIII. Prepare a brief summary of the text: Savings Banks and the National Giro
- •The changing environment and activities of the uk retail banks
- •XIX. Complete the text using these words:
- •XX. Make an overview of the following texts: current accounts
- •Interest-earning cheque accounting
- •Deposit accounts
- •Budget accounts
- •Loan accounts
- •Personal loan accounts
- •XXI. Add the words and expressions that complete the following sentences below:
- •XXII. Read and discuss the following text. Give answers to the questions below:
- •XXIII. Choose the right answer:
- •XXIV. Say what is true and what is false. Correct the sentences:
- •XXV. For each of the following phrases find the expression in the text or in the dialogue that explains it:
- •XXVI. After reading the text explain in detail explain in detail how to open a current account. Current accounts
- •XXVII. Read and translate the text. Describe to a partner how to open a deposit account. Deposit accounts
- •XXVIII. Match questions and answers:
- •XXIX. Act as an interpreter for a and b:
- •Paying-in slip
- •XXX. Translate into Ukrainian.
- •XXXI. Read the dialogue.Answer the questions which follow it. Reproduce the dialogue in pairs.
- •Choosing a bank account
- •XXXII. Read the text and write a précis in English in about 200 words:
- •Questions:
- •Unit IV Text a Wholesale banks
- •British merchant banks
- •Other British banks
- •Overseas banks
- •I. Key terms
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. Fill in the blanks:
- •V. Rearrange the following sentences to make up a coherent and logical text about other British banks. The first sentence is given to help you: Other British banks (iso)
- •VI. Prepare a brief summary of the text:
- •VII. Translate the text in writing: The bill of exchange
- •The merchant banks
- •VIII. Read and retell the following text. Foreign banks
- •IX. After reading the following dialogue translate the passages concerning recent changes and the range of services provided by the bank:
- •X. Study the divisions of the bank and their areas of responsibilities:
- •XI. Look at the terms in the left-hand column. Match each one with its correct definition in the right-hand column:
- •XII. Scan the following text in about 100 words. Give the proper title to the text:
- •XIII. Read the following information:
- •If you represent Company c, look at the following instructions.
- •XIV. Choose words to complete each sentence. In some cases there is more than one possibility.
- •XV. Read the dialogue. Answer the questions which follow it: Part I. Application for credit
- •Part II. Granting the Loan on an Open Note
- •XVI. After reading the text answer the questions which follow it:
- •XVII. Choose the right answer:
- •XVIII. Say what is true and what is false. Correct the false sentences:
- •XIX. Translate the following text into English:
- •XX. Role-play
- •Text b The discount houses
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. For each of the following words you should provide a word with the same or similar meaning and a word, which is opposite in meaning:
- •V. Join the halves.
- •VI. Read about the history of Alexanders. Ask comprehension questions on the text. Alexanders Discount p.L.C.
- •VII. After having read the text below you should be able to answer the questions following the text: Building societies
- •VIII. Analyse the following charter:
- •IX. Make an overview of the following text in English: Other deposit-taking intermediaries
- •Investing financial intermediaries
- •Insurance companies
- •Investment trusts
- •X. Find the terms which match the following definitions:
- •Unit V federal reserve banks
- •Organization of the Banks
- •Monetary Policy Role
- •Supervision and Regulation
- •Government Services
- •Depository Institution Services
- •Key terms
- •Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Case Study:
- •Monetary Policy and the Economy
- •The ultimate targets of monetary policy
- •V. Read the text and prepare your comments on the supply of Federal Reserves, using the given below picture. Supply of Reserves
- •Trading of Reserves
- •VI. Opposites and Synonyms.
- •VII. Join the halves.
- •VIII. Summarize the following passage in about 100 words and give an appropriate title
- •IX. Write a memorandum.
- •X. Read the passage below and explain the meanings of the words and phrases which have been highlighted.
- •XI. Analyze the following text. Make up a plan of it; give the translation of the underlined words and word combinations. Open Market Operations
- •XII. Interpretation of data.
- •XIII. Find in the text given below answers to the following questions:
- •XIV. Give a brief report on the given material Techniques of Open Market Operations
- •Repurchase Agreements
- •Federal Reserve System outright transactions Billions of dollars
- •Matched Sale-Purchase Transactions
- •Federal Reserve System temporary transactions
- •XV. Case study.
- •A typical day in the conduct of open market operations
- •The discount window
- •Interest rates
- •XVI. Analyze the texts. Complete a list of advantages and disadvantages for the borrower of each of the types of credit. Types of Credit
- •Adjustment Credit
- •Adjustment borrowing and the spread of the federal funds rate over the discount rate Seasonal Credit
- •Extended Credit
- •Emergency Credit
- •Unit VI
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following word combinations:
- •IV. Explain the following word combinations and use them in your own sentences:
- •V. Fill in the blanks. Rewrite the passage filling in the blanks from the list of words below.
- •Financial institutions: their role in business
- •Commercial Banks
- •Table 1. Top 15 Commercial Banks in the United States (Based on Total Assets)
- •VI. Summarize the following passage in about 100 words: Young Americans Bank
- •VII. Choose the right answer:
- •VIII. Do it in English making use of the active vocabulary: Порівняння банківської структури сша та інших країни
- •X. Express the main idea of each of the paragraphs in the following text in English:
- •XI. Act as an interpreter for a and b:
- •Other Banking Institutions Thrifts and Credit Unions
- •Limited-Service Banks
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the corresponding English terms:
- •IV. Summarize the functions of savings banking institutions in about 150 words.
- •V. Find in the text the words which correspond to the following explanations:
- •VI. Explain the meaning of the following word combinations and use them in your own sentences:
- •VII. Complete the table:
- •VIII. Do it in English making use of the active vocabulary: Кредитні спілки
- •IX. Make an overview of non-banking institutions. Use comprehension questions given below: Nonbanking Financial Institutions
- •X. Complete the sentences:
- •XI. Match the words and the word combinations given on the left with their dictionary definitions given on the right:
- •XII. Explain the following word combinations and use them in your own sentences:
- •XIII. Role play:
- •XIV. The following are some of the more obvious and important differences in terminology between British and American English in the area of finance.
- •XV. Speak on the following topics:
- •Unit VII the banking system of ukraine
- •Structure of the banking system of ukraine
- •I. Key terms:
- •II. Answer the following questions:
- •III. Study the following information: Selected data on banks of Ukraine
- •IV. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •V. Find English equivalents to the words and word combinations given below:
- •VI. Translate the following text into English: Організація внутрішнього аудиту в комерційних банках України та взаємозв'язок з зовнішніми аудиторами
- •VII. Translate the text in writing: Banking system
- •VIII. Read and discuss the following texts: Monetary policy: The nbu further reduces the discount and reserve requirement rates
- •Financial markets: Although the amount of bad credits has decreased, it is still quite high
- •Bank activity bases concerning automation of electronic payments
- •I. Key terms:
- •II. Answer the following questions:
- •III. Find in the text the following words and word combinations and translate the sentences in which they are used:
- •IV. Study and present the information given in the text: opening a bank account
- •V. Read and retell the following text: Rise and development of the banking system of Ukraine
- •VI. Write a resume of the text given below: Banks and the Association of Ukrainian Banks
- •Unit VIII the national bank of ukraine
- •Issuing centre
- •The National Bank of Ukraine determines the foreign exchange policy.
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks in this passage, using words from the list given below:
- •IV. Case Study.
- •V. Opposites and synonyms.
- •VI. Join the halves.
- •VII. Summarize the following text in about 100 words and give an appropriate title.
- •Herald of the National Bank of Ukraine, May 2000
- •VIII. Read the memorandum (memo) written by the Kyiv National University teacher, who is responsible for the students practicing at one of the nbu departments (International Banking Department).
- •1) Memo 1
- •2) Memo 2
- •IX. Read the passage below and explain the meanings of the words and phrases, which have been underlined. Cash Circulation and Settlements Sphere
- •X. Make a chart using the following data, given by the nbu (20xx).
- •XI. Write a memo to your supervising teacher, in which you should comment on the envisioned monetary parameters, shown in the table.
- •XII. Complete the sentences using your own words:.
- •XIII. Match the words and word combinations given on the left with their dictionary definitions given on the right.
- •XIV. Point all possible advantages and disadvantages (if may be) of the bills of exchange (b/e) given bellow. Bills of Exchange
- •2) Study the letter:
- •XVI. A) Study the text given below and make your comments on it: Role of the Central Bank in Interbank Settlement
- •XVII. Study the Bank’s following tables, add the data on the Bank of England, and the nbu and state what is different and what is not in their performance.
- •Unit IX bank supervision
- •Organization of Effective Bank Supervision
- •Introduction to the Legal Framework
- •I. Key terms
- •II. Answer the following questions in your own words:
- •III. Fill in the blanks:
- •IV. Translate into English
- •V. Study the following text and make up a plan, covering all crucial points
- •IV. Opposites and Synonyms.
- •VII. Join the halves.
- •VIII. Summarize the following passage in about 100 words and give an appropriate title.
- •Introduction to the Camel Rating System
- •IX. Write a memorandum.
- •X. Read the passage below and explain the meanings of the words which have been highlighted.
- •Study the following notes and prepare an oral presentation
- •Component ratings
- •Analysis of Capital
- •Risk Assets
- •Analysis of asset quality
- •XII. When you have considered these problems, express your thoughts in writing.
- •XIII. Asking about credit rating.
- •Using an Enquiry Agency
- •Replying to enquiries about credit rating
- •Refusing to reply
- •Replying favorably
- •Letter to a referee
- •Questions
- •Enquiry Agent's reply
XI. Translate the following text into English without using a dictionary:
Аналіз багатовікової світової історії банківської справи та механізму функціонування грошового ринку дає підстави віднести до банківської діяльності комплекс з трьох посередницьких операцій:
— приймати грошові вклади від клієнтів;
надавати клієнтам позички і створювати нові платіжні засоби;
здійснювати розрахунки між клієнтами. Виконання цього комплексу операцій можна вважати визначальною економічною ознакою банку взагалі — як центрального, так і комерційного'". Вказані операції є базовими, вони створюють первинну сферу банківської діяльності. Це місце їх визначається самою природою грошового ринку.
Уявімо собі таку гіпотетичну ситуацію, коли на грошовому ринку діє тільки один фінансовий посередник. Щоб ринок міг функціонувати нормально, цей посередник повинен прийняти на вклади всі вільні грошові кошти від продавців, передати їх покупцям і здійснити розрахунки по їх зобов'язаннях один з одним та з третіми особами. Тільки в цьому випадку попит і пропозиція на грошовому ринку будуть реалізовані і такий посередник виконає повністю свою посередницьку місію. При невиконанні будь-якої з цих операцій зв'язок між попитом і пропозицією на грошовому ринку буде розірваним або він повинен буде здійснюватися у формі прямих контактів між продавцями і покупцями грошей.
Отже, комплекс з трьох базових операцій створює первинну сферу банківської діяльності, а фінансовий посередник, що виконує цей комплекс, є банківським інститутом, банком в економічному розумінні.
В дійсності фінансові посередники, крім базових, можуть виконувати й багато інших, не базових, але потрібних для грошового ринку операцій. Такі банки прийнято називати універсальними. Але якщо фінансовий посередник виконує не всі базові операції (тільки одну чи дві з них), чи можна вважати банком в економічному розумінні, На нашу думку, якщо такий посередник не забезпечує комплексу базових операцій грошового ринку, він не є банком в повному розумінні цього слова, а скоріше це частина такого банку, яка може існувати тільки в кооперації з іншими подібними посередниками, що виконують решту базових операцій грошового ринку. Такі банки прийнято називати спеціалізованими.
Якщо ж посередник грошового ринку не виконує жодної з названих базових операцій, тобто позбавлений ознак банку, його відносять до небанківських фінансових інститутів.
XII. Discussion topics:
1. Banks as major market participants.
2. The role of banking in the economy of the country.
3. A need for financial intermediation.
XIII. As we have already seen, a bill of exchange might not be honoured, or the order might be cancelled. So, a letter of credit is a more binding method of payment. Documentary Credits
A bill of exchange might not be honoured, as we saw at 9.6.6, or the order might be cancelled. But a letter of credit is a more binding method of payment.
Letters of credit (L/C) have been used for centuries in one form or another to enable travellers to obtain money from overseas banks. The process begins with the traveller asking his bank to open a letter of credit in his favour, i.e. for him, for a specific amount which is debited to his account. The bank then drafts a letter which will allow him to draw money on overseas banks with whom the home bank has an agreement. The foreign banks will then draw on the home bank to recover their payments.
This method of obtaining money has now generally been replaced by Euro cheques, traveller's cheques, and credit cards. But documentary credits - letters of credit accompanied by documents -are widely used in the import/export trade.
There are two types of documentary credit: revocable, i.e. those that can be cancelled, and irrevocable, i.e. those that cannot be cancelled. The second type is more common in overseas business transactions.
The stages in an irrevocable documentary credit transaction are as follows:
The importer agrees to pay by documentary credit, and tells his bank that he will do so by completing an application form (see 9.8.2) which names the exporter and states: the amount to be paid; the documents concerned; what the consignment consists of; whether the shipment is c.i.f., f.o.b., etc.; details of dispatch and any other documents involved, e.g. certificate of origin, consular invoice, certificate of quality; and the length of time the credit will be available. The availability of the credit should take account of how much time it will take to prepare and ship the goods.
The importer's bank will then select a bank in the exporter's country to act as its agent, and will notify them that the credit has been opened.
The agent bank will notify the exporter that a credit has been opened, and they may add their own confirmation, i.e. they will promise to see that the conditions of payment against the documents will be fulfilled. If they confirm the letter, the L/C is known as a confirmed credit and the agent bank as the confirming bank.
The exporter ships the goods before the credit expires and sends the shipping documents (bill of lading, insurance certificate, invoice, etc.) to the agent bank who check the documents against the conditions and pay him; or they may have asked him to draw a bill of exchange on them, and will discount the bill for him so that he can get his money immediately.
The agent bank will then send the documents and debit the importer's bank with the cost and charges, which are calculated as a percentage of the total amount of the invoice, plus an extra charge if the letter is confirmed.
The importer's bank then checks the documents, pays the agent bank, and sends the documents to the importer so that he can claim the goods.
N. Z. Business Machines Pty.
100, South Street, Wellington Directors: C.M. Perimann, L.F. Drozin
Telephone: 444 8617 Telex: 60184 BUSMAC Fax: 444 3186
The Manager Date: 3 May 20— New Zealand Bank Takapuna House Takapuna Street Wellington 8
Dear Sir,
Please open an irrevocable documentary credit for £22,000 in favour of Delta Computers Ltd., England. I have enclosed your application form with all the relevant details completed. Please inform me when you have made arrangements with your agents in London. Yours faithfully,
M. Tanner N.Z. Business Machines Pty.
Encl. Application for documentary credit |
The importer writes to his bank opening the credit. The bank sends him the form, which should be filled in. Study the form, take into account all minute details of it.
N. Z. Business Machines Pty. 100, South Street, Wellington Directors: C.M, Perimann, L.F. Drozin
Telephone: 444 8617 Telex; 60184 BUSMAC Fax: 444 3186
Mr G.James Delta Computers Ltd. Bradfield Estate Date 5 May 20— Bradfield Road Wellingborough Northamptonshire NN8 4HB UNITED KINGDOM
Dear Mr James,
Thank you for replying to our enquiry of 19 April and letting us know that the C2000 computers, Cat. No. D16 are available. The terms you quoted are quite satisfactory, and you will find our order, 8815, enclosed. We have instructed our bank, New Zealand Bank, Takapuna Street, Wellington, to open an irrevocable letter of credit for £22,000 in your favour. This should cover c.i.f. shipment and bank charges, and the credit is valid until 10 June 20—. You will receive confirmation from our bank's agents Eastland Bank Ltd., 401, Aldgate, London EC 1, and you may draw on them at 60 days for the amount of the invoice. When submitting your draft, would you please enclose the following documents? Bill of lading (6 copies) Invoice c.i.f. Wellington (4 copies) A.R. Insurance Policy for £24,200 Please fax or telex us as soon as you have arranged shipment. Yours sincerely,
M. Tanner N.Z. Business Machines Pty.
Encl. Order 8815 |
Eastland Bank |
401 Aldgate, London EC1 Telephone: 071 635 2217 (10 lines) Fax: 071 635 2226 |
Chairman: Lord Seaforth Managing Director: I.P. Raimer Directors: R. Lichen M.Sc., B.A. S.D. Harrisman O.B.E., P.R.AkermannB.Sc., N.L.Renut
Delta Computers Ltd. 15 May 20— Bradfield Estate Bradfield Road Wellingborough Northamptonshire NN8 4HB
Dear Sir,
Please find enclosed a copy of the notification we received yesterday from the New Zealand Bank, Wellington, to open an irrevocable letter of credit in your favour for £22,000 which will be available until 10 June 20—. You may draw on us at 60 days against the credit as soon as you provide evidence of shipment. Would you include with the draft the following documents? Bill of lading (six copies) Commercial invoice c.i.f. Wellington (four copies) A.R. Insurance certificate for £24,200. Your draft should include our discount commission which is five per cent, and our charges listed on the attached sheet. Yours faithfully,
P. Medway Documentary Credits Department
Enc. Irrevocable Credit No. 2/345/16
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Barclays Bank International Limited 168 Fenchurch Street, London, EC3P 3HP Date 20th July 200_ Documentary Credits Department Specimen Irrevocable credit No: FDC/2/6789 To be quoted on all drafts and correspondence |
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Beneficiary (ies) Speirs ans Wadley Limited, Adderley Road, Hackney, London, E.8. |
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Advised through |
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Accreditor Woldal Incorporated, PO Box 667, Broadway Hong Kong |
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To be completed only if applicable Our cable of Advised through Refers |
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Dear Sir(s) In accordance with the instructions received from The Downtown Bank & Trust Co. we hereby issue in your favour a Documentary credit for £4108 available by your drafts (say) Four thousand, one hundred and eight pounds sterling drawn on us
at sight for the 100% c.i.f. invoice value, accompained by the following documents:
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Subject to Uniform Customs and Practice for Documentary Credits (1974 Revision) I.C.C. Publication No. 290 |
Covering the following goods: 400 Electric Power Drills To be shipped from London to Hong Kong not later than 10th August 200__ Partshipment not permitted Transhipment not permitted The credit is available for presentation to us Until 31st August 200__ Documents to be presented within 21 days of shipment but within credit validity. Drafts drawn here must be marked “Drawn under Barklays Bank International Limited 168 Fenchurch Street London branch, Credit number FDC/2/6789 We undertake that drafts and documents drawn under and in strict conformity with the terms of this credit will be honoured upon presentation. Yours faithfully, Co-signed (Signature No. 9847) Signed (Signature No. 1027) CRE 202 (replacing CRE 83.606 series) Please See Reverse |
Compare two methods of payment by a bill of exchange and by a documentary credit.
Which one is the safest?
Which one is more time-consuming?
Which one could be chosen by you and explain why?