A document which is drawn by the buyer's bank at the buyer's request,and guarantees that the bank will pay the agreed-on amount when all prescribed conditions,such as satisfactory delivery,have been completed,is called a sight draft.

Question

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The correct term for the document described is a "letter of credit," not a sight draft. A sight draft is a type of bill of exchange that requires the payment of the specified amount of money immediately upon presentation or at sight, rather than guaranteeing payment upon completion of conditions.

A Document Which Is Drawn by the Buyer's Bank at the Buyer's