Asked by Mahmood Alfayoumi on Jul 25, 2024
Verified
A ________________ is an instrument that is due and payable immediately upon receipt.
A) Commercial draft.
B) Time draft.
C) Banker's acceptance.
D) Sight draft.
E) Trade acceptance.
Sight Draft
A financial document that demands immediate payment upon presentation to the drawee, often used in international trade.
Time Draft
A written order to pay a specified amount of money at a certain time in the future, often used in international trade.
Banker's Acceptance
A short-term financial instrument issued by a company that is guaranteed by a commercial bank. It is commonly used in international trade.
- Understand the concepts and applications of credit instruments in financial management.
Verified Answer
Learning Objectives
- Understand the concepts and applications of credit instruments in financial management.
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