Drafts which are backed up by banks and are payable to...

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Drafts which are backed up by banks and are payable to seller of products or services are classified as

A. banker acceptance

B. secured acceptance

C. unsecured acceptance

D. economic acceptance

Answer: Option A

Solution (By Examveda Team)

Drafts which are backed up by banks and are payable to seller of products or services are classified as banker acceptance. A banker's acceptance requires the bank to pay the holder a set amount of money on a set date.

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