Which of the following statements is not true?
A) Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered.
B) When a banker's acceptance is discounted in the secondary market it becomes a commercial note.
C) Sight drafts require immediate payment.
D) Banker's acceptances arise when a bank guarantees payment on a commercial draft.
E) Both Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered; and Sight drafts require immediate payment.

Question

Quizplus · Accepted Answer

When a banker's acceptance is discounted in the secondary market, it does not become a commercial note; it remains a banker's acceptance.

Which of the Following Statements Is Not True