A banker's acceptance
A) is payable to the drawee immediately on presentation in a bank.
B) is a time draft that has been drawn on and accepted by a bank.
C) is a sight draft that can be used as a negotiable instrument in banks.
D) allows a buyer possession of the merchandise without signing any formal documents.

Question

Quizplus · Accepted Answer

A time draft allows for a delay in payment-normally 30, 60, 90, or 120 days. When a time draft is drawn on and accepted by a bank, it is called a banker's acceptance.

A Banker's Acceptance