Asked by Robert Pesta on Apr 24, 2024
Verified
Which of the following is true of a foreign draft?
A) It is drawn in one state and payable in another state.
B) It is drawn in one nation and payable in another nation.
C) It is drawn on one bank and payable to a governmental body.
D) It is drawn in one city and payable in another city in the United States.
Foreign Draft
A financial instrument used in international trade, drawn by an exporter on a foreign buyer, which orders the payment of a specified amount of money.
- Understand the principles of drafts, encompassing both sight and bank drafts, and their application in commercial activities.
Verified Answer
MJ
Maria Juett6 days ago
Final Answer :
B
Explanation :
A foreign draft is a form of international payment in which a bank draws a draft on another bank in a foreign country, payable to a recipient in that country. Therefore, option B is correct as it is drawn in one nation and payable in another nation. The other options do not accurately describe a foreign draft.
Learning Objectives
- Understand the principles of drafts, encompassing both sight and bank drafts, and their application in commercial activities.