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Management · Q445

International Finance and Treasury

Graduate and Post Graduate · Management · question 445

Q445

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

A.
banker acceptance
Answer
B.
secured acceptance
C.
unsecured acceptance
D.
economic acceptance

Answer: Option A

Solution

Answer: Option A
Solution:
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.