a written, dated and signed instrument. Promissory note is the simplest form of a credit instrument. It is a written promise of an individual to pay a certain amount of money at certain time in the future to an appointed person or bearer. II. Kinds of credit instruments Credit instrument existed before coinage. In Assyria in 8th century B.C. people used clay tablets and fragments that were like the bills of exchange and promissory notes that we are using today. But the use of credit instrument
Words: 2422 - Pages: 10
market for debt instruments. There is no physical "money market." Instead it is an informal network of banks and traders linked by telephones, fax machines, and computers. Banks financial institutions, companies and government are the key participants in the money market. The size of the transactions in the money market typically is large ($100,000 or more). At the center of this web is the central bank whose policies have an important bearing on the interest rates in the money markets. The money market
Words: 2004 - Pages: 9
versa a. barter b. barter economy c. money d. utility 4. Exchange of goods a. barter b. barter economy c. money d. utility 5. Medium of exchange and this quality of as its most significant purpose a. coin b. utility c. bank money d. money 6. Defined money as anything that is commonly used as a medium of exchange or as a standard of value a. Ludwig b. Francis Lusac c. Raymond Kent d. Terence Gaugh 7. The object or commodity should be used in its original
Words: 12798 - Pages: 52
Accounts payable and trade credit work in different ways. As stated by Axia (2010), “Accounts payable are financing vehicles because they represent short-term loans extended, in the normal course of business, by vendors and employees” (¶3, pg. 325). Meaning that accounts payable are monies owed to vendors and/or employees for inventories and/or services that were purchased on credit. Trade credit, on the other hand, is an extension of time in which money for purchases is owed (Axia, 2010). When dealing
Words: 575 - Pages: 3
Structured Finance RMBS/Greece Performance Report Analysts Aksel Etingü +44 20 7682 7135 aksel.etingu@fitchratings.com Peter Dossett +44 20 7862 4027 peter.dossett@fitcharatings.com Spyros Michas +44 20 7070 5801 spyros.michas@fitchratings.com Greek RMBS Performance Bulletin 2008 n Summary In this performance report, Fitch Ratings present an overview of the performance of Greek RMBS transactions. To date, Fitch Ratings has provided a rating to all Greek RMBS transactions that
Words: 5844 - Pages: 24
will prepare a presentation for the chief financial officer (CFO) to present to a bank vice president. The bank vice president will decide if the bank will approve a $1,000,000 funding request for the European expansion of Custom Snowboards Inc. currently under consideration. The bank has not confirmed it is willing to consider a $1,000,000 loan. The bank will make its assessment of the risk associated with the loan after your presentation. You will prepare another presentation to present directly
Words: 667 - Pages: 3
the members on statement of compliance with best practices of the code of corporate governance Auditors' report to the members Balance sheet Profit and loss account Statement of comprehensive income Cash flow statement Statement of changes in equity Notes to the accounts Attendance at board meetings Pattern of shareholding 02 04 06 08 10 12 14 15 16 17 19 23 25 28 29 30 31 33 34 35 37 38 39 41 42 78 79 Company Information BOARD OF DIRECTORS BASHIR ALI MOHOMMED ZAIN BASHIR ZIAD BASHIR MOHAMMED ZAKI
Words: 42773 - Pages: 172
5%. Net Income increases from $2,509 in 2009 to $4,096 by 2012 (a 17.8% CAGR over the three year period). All assumptions were provided in the case, but we did assume a reduction in the interest rate back to the 7.25% for the current loan in 2012, when the Notes Payable to Accounts Receivable ratio falls back below the 70% threshold. One concern not discussed in the case is the relative growth of Flash Memory vs. the SSD category. Based on the information provided, we estimate Flash’s share of
Words: 1026 - Pages: 5
System 1.1 Functions of a financial market * Markets are the process that facilitates the exchange of things of values. These things of value are often categorised as real assets, such as a house or a car, and financial assets, such as a loan to buy a house or car. These could take place in a non-formal market place, non-market exchanges can be very time consuming. * It brings opposite parties together. If not, those with needs must go everywhere to find the items themselves e.g. milk
Words: 3858 - Pages: 16
Q.5. Discuss the importance of a bank for a country. IMPORTANCE OF A BANK The importance of the banking system to an economy no emphasis. A well organized banking system provide liquidity and mobility to the financial resources available in the economy. It helps the economy in the following regards. 1. BRING ECONOMIC STABILITY IN THE COUNTRY 2. CO-ORDINATION AMONG ALL THE UNITS 3. ENCOURAGE SAVING 4. ACCERATE INVESTMENT 5. CAPITAL FORMATION 4. ACCERATE INVESTMENT 5. CAPITAL FORMATION 6. CREATION
Words: 5225 - Pages: 21
