When a draft guarantees payment for goods in international trade,the draft is called a(n):

Question

Quizplus · Accepted Answer

A bill of exchange, also known as a draft, is a written order from one party to another to pay a certain amount of money on demand or at a specified time. It is a common payment mechanism in international trade and serves as a guarantee of payment for goods or services. Therefore, option B is the correct answer. The other options are either incorrect or unrelated to the concept of a draft in international trade.

When a Draft Guarantees Payment for Goods in International Trade,the