If a bank issuing a letter of credit accepts the time draft that is issued in connection with the letter of credit,a _______________________ results.

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If a bank issuing a letter of credit accepts the time draft issued in connection with it, the result is a banker's acceptance. A banker's acceptance is a time draft that a bank guarantees to pay at maturity, and it is frequently used in international trade transactions because it is considered a low-risk financial instrument. A sight draft is due immediately upon presentation, a bill of lading is a shipping document that represents ownership of goods being shipped, and a transfer of title refers to the legal transfer of ownership from one party to another.

If a Bank Issuing a Letter of Credit Accepts the Time