Bogart presents a sight draft to Commerce Bank for payment. A bank employee writes accepted across the face of the instrument, and adds the date and the bank's signature. The draft is
A)acknowledged as received, but not payable without further verification.
B)accepted and will be payable by the close of the next business day.
C)payable ninety days after sight.
D)payable immediately or within a stated time after sight.

Question

Quizplus · Accepted Answer

When a bank (or any drawee) writes "accepted" across the face of a sight draft, adds the date, and signs it, this constitutes an acceptance of the draft. This means the bank agrees to pay the draft either immediately or within a stated time after sight, as per the terms of the draft.

Bogart Presents a Sight Draft to Commerce Bank for Payment