If a draft is sold to another party before it comes due, it is discounted.

Name: If a draft is sold to another party before it comes due, it is discounted.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a draft is sold before its due date, the price paid for it is usually less than the amount stated on the draft. This is called discounting, and it allows the holder of the draft to receive cash immediately instead of waiting for the due date.

If a Draft Is Sold to Another Party Before It