A banker's acceptance:
A)is payable immediately on presentation to the drawee.
B)allows a buyer possession of the merchandise without signing a formal document.
C)is a time draft that has been drawn on and accepted by a bank.
D)is the same as a sight draft.

Question

Quizplus · Accepted Answer

A banker's acceptance is a type of time draft that is drawn on and accepted by a bank, typically used in international trade transactions to guarantee payment to the seller. It is not payable immediately upon presentation and is not the same as a sight draft, which is a type of demand draft.

A Banker's Acceptance