TeachMeFinance.com - explain Domestic exchange loan
Domestic exchange loan -- There is practically no such thing
as a loan of domestic exchange. When a loan is obtained
from a bank it ordinarily delivers to the borrower a check
on itself made out by its cashier (it is called a cashier's check)
which the borrower may use in the place where issued or may
transmit to any other place.
The bank will, if desired, furnish to the borrower a draft on
a bank in some other place, but this draft lacks many of the
characteristics of a bill of exchange. The borrower merely
borrows (obtains a loan) and it is a matter of arrangement
with the bank as to the form in which he shall receive the
amount which he borrows.
Also see Foreign exchange loan.
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