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

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A time draft is a type of bill of exchange where payment is due at a specific future date. In this scenario, Rico's draft would be considered a time draft because payment is due on September 1, the future agreed-upon date of delivery. A certificate of deposit is a type of investment account, a sight draft requires immediate payment upon presentation and a promissory note is a written promise to pay a specific amount of money by a certain date.

Rico Agrees to Buy a Bicycle from Salvatore for $250