Which of the following money market investments is a draft typically used in international trade,which is written by the borrower and guaranteed by the bank on which the draft is drawn?
A)Treasury Bill
B)Repurchase Agreement
C)Certificates of Deposit (CD)
D)Banker's Acceptance
E)Commercial Paper

Question

Quizplus · Accepted Answer

A banker's acceptance is a type of draft that is commonly used in international trade. It is a written order by the borrower to pay a specific amount of money at a future date, which is then guaranteed by a bank.

Which of the Following Money Market Investments Is a Draft