Providing international trade service Assignment Help

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Providing international trade service:

Creating demand - deposit money:

By lending out the money - i.e. deposit that they collected from some customers, commercial banks create additional purchasing power in the economy.

Providing international trade service:

Commercial banks are involved in the financial aspects of international trade, especially by discounting bills of exchange for their customers who are exporter and opening letters of credit in favour of their customers who are importers.A letter of credit is an undertaking by the bank accepting to redeem the liability of its customers on an import contract.

Providing brokerage services: Commercial banks undertake to buy and sell stocks and shares on behalf of their customers.

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