Which of the following money market investments is a draft written by the borrower and guaranteed by the bank on which the draft is drawn? It is typically used in international trade transactions. The borrower is an importer who writes the draft in payment for goods.

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A banker's acceptance is a draft written by the borrower and guaranteed by the bank on which the draft is drawn. It is typically used in international trade transactions. The borrower is an importer who writes the draft in payment for goods. Treasury bills, repurchase agreements, certificates of deposit, and commercial paper are all types of money market investments, but they do not fit the description of a banker's acceptance.

Which of the Following Money Market Investments Is a Draft