Which of the following functions does a draft NOT perform?
A)to provide written evidence,in clear and simple terms,of a financial obligation
B)to enable both parties to potentially reduce their costs of financing
C)to provide a negotiable and unconditional instrument
D)to offer the exporter greater safeguards than a letter of credit in securing repayment from the importer

Question

Quizplus · Accepted Answer

A draft may provide written evidence of a financial obligation, enable parties to reduce costs of financing, and provide a negotiable and unconditional instrument. However, a draft does not offer the exporter greater safeguards than a letter of credit in securing repayment from the importer, as a letter of credit is specifically designed to provide this type of protection.

Which of the Following Functions Does a Draft NOT Perform