Under the terms of a sight draft,the buyer's bank:
A) is instructed to make immediate payment.
B) treats the invoice like a postdated check.
C) forwards the acceptance to the seller until due.
D) enters into a factoring arrangement.

Question

Quizplus · Accepted Answer

A sight draft is a type of draft which requires the buyer's bank to make immediate payment to the seller upon presentation of the draft. This means that the buyer's bank is instructed to make immediate payment, making option A the correct answer.

Under the Terms of a Sight Draft,the Buyer's Bank