Explaining the types of bills of exchange

Before we explain the types of bills of exchange, it is good we understand the meaning of a bill of exchange. A bill of exchange is simply a paper that compels a bank or an individual to pay a certain amount of money to another person, company, or country. The person ordering the bank or … Read more

International bill of exchange (IBOE)

The international bill of exchange (IBOE) is a mode of business transaction that is intended to hold everyone accountable for making timely payments. Individuals who operate a successful small business but do not want it to remain small may want to get their brand and products in front of new customers in new international markets. In … Read more

Avalised Bill of Exchange Meaning

Here we discuss the avalised bill of exchange meaning, benefits, and differences with a letter of credit. Having a proper understanding of a bill of exchange itself is one thing however, having an avalised bill of exchange could be viewed as a different concept and provide a completely different meaning. There’s a reason the bill … Read more

Debenture types, examples, features and risk

Debentures are types of bonds with some risks and advantageous features used by corporations and governments to raise funds. A typical debenture example is the treasury bonds and treasury bills. This type of bond is usually crucial for raising long-term debt capital. Technically, a debenture represents a document that either creates a debt or acknowledges … Read more

What is bill of exchange and types?

There are many types of bills of exchange which will be further explained in this article. Bill of exchange definition A bill of exchange is defined as a written order that binds one party to pay a fixed amount of money to another party on demand or at some point in the future. It is … Read more

Money Market Functions, Features, and Examples

From the definition above, we can see that the money market has to do with the sale and purchase of large volumes of very short-term products which include overnight reserves and commercial paper. The debt securities are highly liquid, very safe, and short-term. Because of their features, they are oftentimes seen as cash equivalents that … Read more

Capital Market Instruments, Examples and Types

Capital market instruments include stocks, bonds, equities, etc. A forum is being created where these parties can exchange securities. Here, different types of financial instruments are traded by different entities. These instruments will be explained in the latter part of this article. The components of capital market comprise primary and secondary markets. While the primary … Read more

Government Spending Types and Reasons

A government spending and taxation policy to achieve macroeconomic goals is known as fiscal policy. Government expenditure is an important component of fiscal policy and works alongside taxation. This is because taxation boosts government revenue which the government uses to finance public expenditure. This means that over time, taxation has greatly increased government spending. It … Read more

What is frictional unemployment? examples and effects

Those workers that remain in their jobs until they find a new one are not part of the frictionally unemployed because they are never unemployed. Even in a stable growing economy, frictional unemployment naturally occurs. In other words, it is always present in the economy. Some frictional unemployment is inevitable because there will always be … Read more

What is Structural Unemployment? Examples and Causes

After a recession is over, structural unemployment can keep the unemployment rate high for a long time. If this unemployment is being ignored, it can bring about a higher natural unemployment rate. The sum of frictional and structural unemployment is thought of as the Natural Unemployment Rate. Structural unemployment is the result of a skill … Read more