Examveda

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

A. bank

B. importer

C. exporter

D. Agent

Answer: Option A

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.

This Question Belongs to Management >> International Finance And Treasury

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