A contractual obligation of a bank for a future payment is called an:
A) Letter of contract
B) Export netting agreement
C) Transfer price
D) Banker's acceptance

Question

Quizplus · Accepted Answer

A banker's acceptance is a financial instrument representing a contractual obligation from a bank to make a future payment. This is commonly used in international trade for the purchase of goods, where the bank acts as an intermediary to ensure payment to the seller. Therefore, option D is the correct answer. Options A, B, and C do not accurately describe this type of financial instrument.

A Contractual Obligation of a Bank for a Future Payment