Which of the following is a short-term promissory note issued by a corporation, bearing the unconditional guarantee of a major bank?
A) Banker's paper
B) Commercial paper
C) Banker's acceptance
D) Commercial acceptance

Question

Quizplus · Accepted Answer

Banker's acceptance is a short-term promissory note issued by a company that is guaranteed by a commercial bank. It is widely used in financing international and domestic trade because the bank's guarantee ensures the note's creditworthiness.

Which of the Following Is a Short-Term Promissory Note Issued