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 written order by one party that orders a second party to pay a third party.

Question

Quizplus · Accepted Answer

A draft is a written order by one party (the drawer) instructing another party (the drawee) to pay a specified amount of money to a third party (the payee). It is not necessarily a two-party transaction and it may have conditions or limitations.

Which of the Following Is True of a Draft