Asked by victoria burgos on Jun 30, 2024
Verified
Commonly used in international trade, a draft that orders a buyer's bank to pay is a cashier's check.
International Trade
The exchange of goods and services across international borders or territories.
Draft
A draft is a preliminary version of a document, plan, or design that is subject to revisions and improvements.
Buyer's Bank
The financial institution that represents a buyer in transactions, ensuring payment to the seller under agreed conditions.
- Determine and discern the differences between multiple forms of negotiable instruments, including but not limited to promissory notes, drafts, and checks.
Verified Answer
SH
Syatti HasyyatiJul 02, 2024
Final Answer :
False
Explanation :
A draft that orders a buyer's bank to pay in international trade is known as a "bill of exchange" or "trade draft," not a cashier's check. A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.
Learning Objectives
- Determine and discern the differences between multiple forms of negotiable instruments, including but not limited to promissory notes, drafts, and checks.