A commercial draft can be a(n)
A)sight draft.
B)time draft.
C)overdraft.
D)sight draft and time draft.

Question

Quizplus · Accepted Answer

A commercial draft can be either a sight draft or a time draft. A sight draft is payable immediately upon presentation, while a time draft allows for a delay in payment, with a specified date in the future on which payment is due. Therefore, both A (sight draft) and B (time draft) are valid choices for a commercial draft. C (overdraft) is not a type of commercial draft.

A Commercial Draft Can Be A(n)