A ________ is a type of draft that is always paid at a future date.
A) sight draft
B) bill of exchange
C) time draft
D) demand draft

Question

Quizplus · Accepted Answer

A time draft, also known as a usance draft, is a type of draft that allows the buyer to pay at a future date, usually within 30 to 90 days after the draft is presented. It is essentially a post-dated check, which gives the seller a promise of payment in the future. The seller can either hold on to the draft until it matures or discount it with a bank to receive immediate payment at a slightly reduced rate.

A ________ Is a Type of Draft That Is Always