Which one of the following credit instruments is commonly used in international commerce?
A)open account
B)sight draft
C)time draft
D)banker's acceptance
E)promissory note

Question

Quizplus · Accepted Answer

Banker's acceptance is commonly used in international commerce as it guarantees payment to the exporter by the importer's bank. Open account, promissory note, sight draft, and time draft do not offer the same level of security for payment.

Which One of the Following Credit Instruments Is Commonly Used