A written order for a bank to pay a third party a stated amount of money on a specified date is a
A) banker's acceptance.
B) letter of credit.
C) bank deposit.
D) line of credit.

Question

​A written order for a bank to pay a third party a stated amount of money on a specified date is a
A) ​banker's acceptance.
B) ​letter of credit.
C) ​bank deposit.
D) ​line of credit.

Quizplus · Accepted Answer

A banker's acceptance is a written order or guarantee from a bank that it will pay a specified amount of money on a specified date to a third party. This is often used in international trade transactions to protect the interests of both the buyer and the seller. A letter of credit is also used in international trade, but it is typically issued by a bank to guarantee payment to a supplier. Bank deposit and line of credit are not relevant to this type of transaction.

​A Written Order for a Bank to Pay a Third

A Written Order for a Bank to Pay a Third