Which of the following is true of a draft?
A)It is always a two-party transaction.
B)It is an unconditional written promise to pay.
C)It is a note created upon deposition of money.
D)It is a pay to order transaction.

Question

Quizplus · Accepted Answer

A draft is a pay-to-order transaction, meaning that it is a written order from one party (the drawer) to another party (the drawee), directing the drawee to pay a specified sum of money to a third party (the payee).

Which of the Following Is True of a Draft