What Is a Banker's Acceptance? How Are They Initiated? Why

question 44

Essay

What is a banker's acceptance? How are they initiated? Why are they desirable for the exporter?

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Definitions:

Contractual Agreement

A legally binding agreement between two or more parties with mutually agreed-upon terms and conditions.

Royalty

A payment made to the owner of certain types of rights, such as patents or copyrights, for the use of their property by others.

Licensing

The granting of permission by the owner of a product or service to another party to use the product or service under specified conditions.

Financial Liability

Any kind of obligation or responsibility to pay money to another party, including loans, accounts payable, and mortgages.