When a draft is drawn on and accepted by a bank, what does it become?
A) Money in the bank
B) Banker's acceptance
C) Surety
D) Break line

Question

Quizplus · Accepted Answer

When a draft is accepted by a bank, it becomes a banker's acceptance, which is a promise by the bank to pay the holder the specified amount at a future date. It can be traded in the secondary market as a short-term, low-risk investment.

When a Draft Is Drawn on and Accepted by a Bank