A time draft is
A) a bill of exchange that is payable within a stipulated period after the date stated on the instrument or after presentation.
B) a bill of exchange that is payable by 10:00am on the stipulated date.
C) a bill of exchange that is payable immediately it is presented.
D) a bill of exchange that is payable by midnight on the stipulated date.
E) a bill of exchange that is payable "at sight" that is at a particular time.

Question

Quizplus · Accepted Answer

A time draft is a type of bill of exchange that contains a stipulated period after the date stated on the instrument or after presentation for the payment to be made. The payment is not immediately due and can be delayed until the specified time period has elapsed. Therefore, option A is the best choice as it describes the nature of a time draft accurately.

A Time Draft Is