For which one of the following instruments does a bank guarantee payment by the buyer?
A)Money market preferred stock
B)Commercial paper
C)Banker's acceptance
D)Invoice
E)Time draft

Question

Quizplus · Accepted Answer

A banker's acceptance is a financial instrument that represents a bank's promise to pay the holder a specified amount on a future date, effectively guaranteeing payment by the buyer.

For Which One of the Following Instruments Does a Bank