When a bank accepts a time draft for payment and sells it in the money markets,it is known as a

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When a bank accepts a time draft and sells it in the money markets, it is called a banker's acceptance. It is a common method of financing trade transactions and provides assurance to the seller that they will receive payment at a future date. The bank's acceptance of the time draft makes it a more secure form of payment, which enables the seller to sell it in the money markets to obtain immediate funds.

When a Bank Accepts a Time Draft for Payment and Sells