Banker's acceptance is a short-term credit investment created by a non-financial firm and guaranteed by a bank.

Question

Quizplus · Accepted Answer

Banker's acceptance is a short-term credit investment instrument that is issued by a non-financial firm and guaranteed by a bank. The bank acts as a guarantor of payment and ensures that the investor receives his principal and interest payments on time. This type of credit investment is often used by businesses to finance international trade transactions.

Banker's Acceptance Is a Short-Term Credit Investment Created by a Non-Financial