An instrument through which a bank retains title to goods until they are paid for is called a(n)

Question

Quizplus · Accepted Answer

A trust receipt is a legal document that allows a bank to retain title to goods as collateral until the borrower pays back the loan. This method is typically used in international trade financing, and it helps protect the bank from the risk of non-payment by the borrower. Option A, B, and D are not correct, as they refer to different types of financial instruments that are not directly related to the retention of title to goods by a bank.

An Instrument Through Which a Bank Retains Title to Goods