Under a ____, the exporter is paid once shipment has been made and the draft is presented to the buyer for payment; under a ____, the exporter provides instructions to the buyer's bank to release shipping documents against acceptance, by the buyer, of the draft.

Question

Quizplus · Accepted Answer

Under a sight draft, the exporter is paid once shipment has been made and the draft is presented to the buyer for payment. Under a time draft, the exporter provides instructions to the buyer's bank to release shipping documents against acceptance, by the buyer, of the draft. Therefore, option A is the correct answer. The other options are not relevant as they either do not relate to payment terms (bill of lading) or involve different payment methods (banker's acceptance).

Under a ____, the Exporter Is Paid Once Shipment Has