Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is
A)none of the choices.
B)a time draft.
C)a sight draft.
D)a promissory note.

Question

Quizplus · Accepted Answer

A time draft is a type of draft that is payable at a fixed or determinable future date, which in this case is September 1, when Rico agrees to pay Salvatore $250 for the bicycle.

Rico Agrees to Buy a Bicycle from Salvatore for $250