In Some Cases,the Exporter May Want to Grant Some Credit

question 32

Short Answer

In some cases,the exporter may want to grant some credit terms to the importer but still want some means to ensure it will be paid.In that case,it can request that the bank exchange documentation against a ____________________ draft in which the importer endorses to promise to pay within a certain time period.

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Definitions:

Inductive

Pertaining to inductance, the property of an electrical conductor by which a change in current through it induces an electromotive force (EMF) in both the conductor itself and in any nearby conductors by mutual inductance.

Capacitive

Related to the ability of a system or component to store charge and energy in the electric field, characteristic of capacitors or systems with capacitive elements.

Ripples

Fluctuations or variations in the output voltage of a power supply, often resulting from incomplete suppression of AC waveform within DC output.

Harmonics

In electrical systems, harmonics are frequencies that are integer multiples of the base fundamental frequency, leading to distortion in power systems.