A time draft for payment at a future date, often used in international trade is known as:
A) a reverse repurchase agreement.
B) a repurchase agreement.
C) a line of credit.
D) a letter of credit.
E) a bankers acceptance.

Question

Quizplus · Accepted Answer

A bankers acceptance is a time draft for payment at a future date which is often used in international trade transactions, serving as a guarantee for future payment. The other options listed (A, B, C, and D) do not refer to a specific financial instrument or arrangement commonly used in international trade.

A Time Draft for Payment at a Future Date, Often