A firm that is buying something from a supplier may effectively arrange for the bank to pay the outstanding bill using a:
A) banker's acceptance.
B) certificate of deposit.
C) letter of payment.
D) forward option.

Question

Quizplus · Accepted Answer

A banker's acceptance is a financial instrument used in international trade where a bank guarantees a payment at a future date, effectively allowing firms to arrange for the bank to pay outstanding bills to suppliers.

A Firm That Is Buying Something from a Supplier May