Manatee Products, a U.S. company, is exporting to a Japanese company. The two parties agree on a draft, but Manatee Products wants it to be a draft that is payable on presentation to the Japanese company. Manatee Products is asking for a(n)
A) bill of lading.
B) sight draft.
C) letter of credit.
D) time draft.
E) offset.

Question

Quizplus · Accepted Answer

A sight draft is a type of bill of exchange that is payable on presentation, meaning the Japanese company must pay the draft when it is presented to them.