A banker's acceptance is a draft drawn on and accepted by an__________.

Solution (By Examveda Team)

A banker's acceptance is a draft drawn on and accepted by an bank. A banker's acceptance is an instrument representing a promised future payment by a bank. The payment is accepted and guaranteed by the bank as a time draft to be drawn on a deposit. The draft specifies the amount of funds, the date of the payment (or maturity), and the entity to which the payment is owed.