When Carlton Company Inc. exported elevator component parts to a company in Taiwan, it allowed the company 90 days to pay for the parts. This is an example of a(n)
A) sight draft.
B) time draft.
C) bill of lading.
D) counterpurchase.
E) offset.

Question

Quizplus · Accepted Answer

A time draft is a financial instrument used in international trade that allows the importer a certain period, in this case, 90 days, to pay for the goods received.