A(n)________ becomes a negotiable instrument that can be traded among financial institutions when inscribed "accepted" by an importer.
A)sight draft
B)ocean bill of lading
C)time draft
D)inland bill of lading

Question

Quizplus · Accepted Answer

A time draft is a type of draft that is payable at a certain future date. When an importer "accepts" the time draft, they are agreeing to pay the amount due on the specified future date. This acceptance turns the time draft into a negotiable instrument that can be traded among financial institutions until the date of payment arrives. A sight draft is payable on demand and does not require an acceptance to become negotiable. An ocean bill of lading and inland bill of lading are documents that relate to shipments of goods, but they are not negotiable instruments.

A(n)________ Becomes a Negotiable Instrument That Can Be Traded Among