Lesson-7 on Foreign Exchange

Question: What is International Monetary Fund (IMF) ?

Answer:

The International Monetary Fund (IMF) is the international organization that oversees the global financial system by following the macroeconomic policies of its member countries; in particular those with an impact on exchange rate and the balance of payments.

Question: What is  the International Chamber Of Commerce (ICC)?

Answer:

Paris based trade association of the world's chambers of commerce. Established in 1919, it promotes "an open international trade and investment system and the market economy," publishes INCOTERMS, and provides arbitration services.

Question: What is NOSTRO Account? 

Answer:

 Our Account with You. It is a banking term to describe an account home bank holds with a bank in a foreign country, usually in the currency of that foreign country.

Question: What is VOSTRO ACCOUNT?

Answer: Your Account with us. It is a local currency account maintained with a bank by another bank. The term is normally applied to the counter party account from which funds may be paid into or withdrawn, as a result of a transaction.

Question: What is Bill of exchange ?

Answer:

 An unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date. A bill of exchange must be in writing and signed and dated.

Question: What is Bill of Entry?

Answer:

A detailed statement prepared by a merchant or his agent (C&F) provides description, nature and value of goods to submit the same to custom authority for signature.

Question: What Does Bill Of Lading Mean?

Answer:

Ø    A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried.

Ø    The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination.

Ø    This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.

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