A written order for the bank to pay a third party a stated amount of money on a specific date without any conditions or strings attached is called a(n)
A) banker's guarantee.
B) banker's acceptance.
C) letter of credit.
D) international promissory note.
E) international charge agreement.

Question

Quizplus · Accepted Answer

A written order for the bank to pay a third party a stated amount of money on a specific date without any conditions or strings attached describes a banker's acceptance. A banker's guarantee involves the bank guaranteeing payment on behalf of a customer, a letter of credit involves a bank guaranteeing payment to a seller on behalf of a buyer, an international promissory note is a written promise to pay a specific amount of money at a certain time, and an international charge agreement is a contract between a buyer and seller detailing payment terms for international transactions.

A Written Order for the Bank to Pay a Third