Which of the following drafts allows for a delay in payment?
A)Sight draft
B)Time draft
C)Bill of lading
D)Counterpurchase
E)Offset

Question

Quizplus · Accepted Answer

Drafts fall into two categories, sight drafts and time drafts. A time draft allows for a delay in payment-normally 30, 60, 90, or 120 days. It is presented to the drawee, who signifies acceptance of it by writing or stamping a notice of acceptance on its face. Once accepted, the time draft becomes a promise to pay by the accepting party.

Which of the Following Drafts Allows for a Delay in Payment