A bankers' acceptance
A) is a draft drawn on a bank and paid by that bank when presented to it.
B) may be accepted by the bank for future payment.
C) is traded in a relatively liquid market until maturity.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

A bankers' acceptance is a financial instrument that operates like a time draft, which means it guarantees payment at a future date. It is a draft drawn on a bank and paid by that bank when presented to it, and may be accepted by the bank for future payment. Bankers' acceptances are also traded in a relatively liquid market until maturity, making them a flexible tool for financing import and export transactions. Therefore, all of the other answers (A, B, and C) are correct.

A Bankers' Acceptance