A foreign bank issues an undertaking to the exporter ( through a bank in the exporter’s country) to pay for the goods as long as the exporter complies with the terms and conditions of the contract. This is a much safer form of payment for the exporter. To be even safer, the exporter can arrange for the bank in his/her country to act as “ confirming bank”, which means that the bank in the exporter’s country is responsible for the transaction:

A depositor is ………….when he writes a check for more money than he has in his account:

The money needed to start a company is called……………………………….:

Money owed by a company:

Loan where the borrower is not likely to pay:

Assets used by a company in its ordinary works ( such as cash, materials, finished products, monies owed by customers ):

The bank’s ………….lists assets and liabilities:

Failure to carry out the terms of a contract, especially failure to pay back a debt:

A debt instrument that bears interest and promises repayment:

Regular bank statements will be sent to you by post, listing recent………..:

The government bank which regulates all commercial banks in a country is called …………….:

The amount of money that the lender lends to the borrower:

…………………. acts as a unit of account, a store of value, and a medium of exchange in transactions:

The net worth or equity of the shareholders’ investment in a company:

Capital for investment which may easily be lost in risky projects, but can also provide high returns:

In order to withdraw money the bank requires your………….. :

Banking services offered to large companies:

Banks make their profits from the difference between the interest rate charged to borrowers and that paid to depositors, also known as …..:

Two or more customers may apply for a ……………………..:

An organized market for the issue of new securities and the exchange of secondhand ones:

The value of one currency in terms of another: