At sight definition is a term used in the context of banking and finance, and refers to a payment that is due on demand. In other words, the debtor is required to pay the amount owed as soon as the creditor demands it. This type of arrangement is typically used for short-term loans, such as line of credit or overdraft facilities. Is bill of exchange required for LC at sight? A bill of exchange is not required for a letter of credit (LC) at sight. However, it is generally required for an LC with a deferred payment period. What does TT mean in payment terms? There are a variety of different payment terms that businesses may use when invoicing customers, and TT is one such term. TT stands for "telegraphic transfer" and refers to a method of payment that is made electronically, typically via bank transfer. This type of payment is often used for international transactions, as it is a quick and efficient way to send and receive payments.
What are 4 types of letter of credit? 1. Commercial Letters of Credit: These are the most common type of letter of credit and are typically used in international trade transactions. The issuing bank guarantees that the funds will be available to the seller (beneficiary) up to the specified amount, provided that the seller meets the terms and conditions set forth in the letter of credit.
2. Standby Letters of Credit: These are similar to commercial letters of credit, but are typically used as a back-up in case the buyer is unable to meet their financial obligations. The issuing bank guarantees that the funds will be available to the seller (beneficiary) up to the specified amount, provided that the buyer defaults on their payment.
3. Financial Institution Letters of Credit: These are typically used by banks and other financial institutions to guarantee payments between parties. The issuing bank guarantees that the funds will be available to the payee (beneficiary) up to the specified amount, provided that the payer meets the terms and conditions set forth in the letter of credit.
4. Traveler's Letters of Credit: These are typically used by individuals who are traveling abroad. The issuing bank guarantees that the funds will be available to the traveler up to the specified amount, provided that the traveler meets the terms and conditions set forth in the letter of credit. What is the difference between DP and CAD? In microeconomics, DP is short for the demand curve and CAD is short for the supply curve. The demand curve is a graphical representation of how many units of a good or service will be demanded at various prices, while the supply curve is a graphical representation of how many units of a good or service will be supplied at various prices. The two curves intersect at the equilibrium price, which is the price at which the quantity demanded is equal to the quantity supplied. What is TT in foreign exchange? TT stands for "telegraphic transfer" and is a type of international wire transfer. This type of transfer is typically used for large sums of money and is the most secure way to send money internationally. The funds are transferred directly from one bank to another, and the sender and recipient will usually receive confirmation of the transfer within a few days.