A time draft is a written order for payment that specifies a future date when payment is due. It is similar to a post-dated check, where the recipient cannot cash it until the specified date. It is also known as a "term draft" or "usance draft".

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A Time Draft Is

Question 15

Multiple Choice

A time draft is

A) A guarantee from the importer's bank that is will act on behalf of the importer and pay the exporter for the merchandise if all relevant documents are presented.
B) Is a written order instructing the importer or his agent to pay the amount specified on its face on a certain date
C) Is a document issued by the common carrier specifying that it has received the goods for shipment
D) Is a negotiable money market instrument for which a secondary market exists

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