Abstract: This chapter discusses credit and instruments of credit. Adequate supplies of credit are necessary not only in industry if production is to be maintained and stimulated. In the domestic day-to-day purchases made by individuals credit has increasingly become a recognized means of the transactions. The chapter presents the advantages to be gained by using the system of transfer from one account to another that Continental countries have had without the ancillary services that banks offer. Some account was given of the system's operation in most of those countries which employed it. The purpose of commercial letters of credit is to facilitate the mechanism of overseas trade by combining the advantages of ready money to the seller of the goods and at the same time enabling the buyer to have credit and yet to permit both parties to have complete security. It is normally used as an adjunct to a contract for the sale of goods and adds perhaps three parties to the original two in the contract.
Publication Year: 1969
Publication Date: 1969-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot