Which of the following statements is not true?
A)Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered.
B)When a banker's acceptance is discounted in the secondary market it becomes a commercial note.
C)Sight drafts require immediate payment.
D)Banker's acceptances arise when a bank guarantees payment on a commercial draft.
E)Both A and C.

Question

Quizplus · Accepted Answer

When a banker's acceptance is discounted in the secondary market, it does not become a commercial note. Instead, it becomes a negotiable instrument that can be bought and sold as an investment.

Which of the Following Statements Is Not True