金融专业英语

1.The 3 main functions of commercial banks:

the creation of money accomplished through lending and investing activities

the holding of deposits

the provision of a mechanism for payments and transfers of funds

2.What are negotiable instruments?

Negotiable Instruments are documents used in commerce to represent the ownership and secure the payment of money.

3.Why do we need negotiable instruments when making payments?

Paying large sums of money in cash is inconvenient and risky.

Negotiable Instruments such as Bills of Exchange, Cheques and Promissory Notes are wildly used as instruments in the international settlement. They represent a right to payment. A right is a promise and not a tangible piece of property.

4.What is a crossing?

It is a direction to the paying bank that the money proceeds should be paid to the payee’s bank and not directly to the payee himself.

General crossings: consisting of two transverse parallel lines across the face of the cheque.

Special crossings: consisting of the name of a particular bank to which payment must be made, and the name itself is the crossing.

5.What is the most important difference between bills of exchange and promissory notes?

6.Why debit cards are named as “debit”cards?

The amount of the purchase is immediately debited from the account and no credit is involved.

7.

fiduciary /fi‘dju:ʃiəri/ a. 受托的n.受托人

A company director owes a fiduciary duty to the company

7.The three most-commonly used means of international settlement: remittance

collection

documentary credit

The other two means: standby L/C & bonds

9.A documentary collection gives greater security than settlement on open account, because the importer cannot take possession of the goods without either making payment or accepting a bill of exchange. The banks concerned are under no obligation to pay.

10.Can the exporter be sure at the time of dispatch of the goods that the buyer will actually pay the sum owed?

No.

So this form of settlement is therefore most appropriate in the following cases:

if the exporter has no doubt about the buyer’s willingness and ability to pay;

if the political, economic and legal environment in the importing country is considered to be stable;

if the buyer’s country has placed no restrictions on imports (e.g. exchange controls) or has issued all the necessary authorizations.

11Q: Why can the exporter retain control of the goods until payment or acceptance?

Q: why under D/P condition, it is unnecessary to include a bill of exchange?

How to complete a instruction order? p252

12.Clean Collection: a draft or cheque unsupported by documents Documentary Collectioin: documents with or without a draft

Q: The disadvantages of clean collection

13.The differences between them primarily lie in 4 aspects as follows:

Whether there are banker’s credit involved in.

Which party is the principal.

When does the exporter ship goods.

Which party is the drawee of the draft.

Can you list any others?

13.: What’s the contrast between negotiation and comfirmation?

Negotiation advances are with recourse, so that if payment is not ultimately forthcoming from the issuing bank, the negotiating bank will be able to claim repayment from the beneficiary of the advance, plus interest. Confirmation advances are without recourse.

14.Can the seller receive payment immediately after presenting the complying documents?

In practice, this means that instead of receiving immediate payment on presentation of the documents (at sight), the seller’s draft is returned to him accepted on face by the nominated bank.

15On what conditions can a transferable be used?

When the supplier of goods sells them through a middleman and does not deal directly with the ultimate buyer.

16.Why there is a need for a first beneficiary and a second beneficiary?

The middleman may not wish to arrange a documentary L/C by himself, or his banker may not be willing to issue a credit on his behalf. Thus the middleman will approach the ultimate buyer and ask him to arrange a transferable credit in the middleman’s favor, which entitles the middleman as the first beneficiary. This transferable credit will allow the first beneficiary to request the bank authorized to pay, incur a deferred payment undertaking, accept or negotiate, or in the case of a freely negotiable credit, the bank specifically authorized as the transferring bank to make the credit available to one or more third parties known as “second beneficiaries”.

17.

What are the similarities and differences between transferable and back-to-back L/C?