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Questions and Answers
Which type of draft is payable at a definite future time?
Which type of draft is payable at a definite future time?
- Time draft (correct)
- Check
- Sight draft
- Trade acceptance
In a trade acceptance, who is the drawer and the payee?
In a trade acceptance, who is the drawer and the payee?
- Bank
- Drawee
- Seller of the goods (correct)
- Buyer of the goods
What type of draft frequently used in the sale of goods is a trade acceptance?
What type of draft frequently used in the sale of goods is a trade acceptance?
- Sight draft
- Check
- Time draft
- Banker's acceptance (correct)
What is the role of the drawee in a trade acceptance?
What is the role of the drawee in a trade acceptance?
Which draft is the most common form of draft?
Which draft is the most common form of draft?
What does a draft that is both a time draft and sight draft mean?
What does a draft that is both a time draft and sight draft mean?
Who is the maker of a promissory note?
Who is the maker of a promissory note?
What is a certificate of deposit (CD) considered as?
What is a certificate of deposit (CD) considered as?
In the context of checks, who is the drawee?
In the context of checks, who is the drawee?
What does a promissory note promise?
What does a promissory note promise?
Who is typically assigned a promissory note?
Who is typically assigned a promissory note?
On certain types of checks, who is both the drawer and the drawee?
On certain types of checks, who is both the drawer and the drawee?
What distinguishes a demand instrument from a time instrument?
What distinguishes a demand instrument from a time instrument?
What characterizes a draft among negotiable instruments?
What characterizes a draft among negotiable instruments?
What is the most common type of draft?
What is the most common type of draft?
Which negotiable instrument is characterized by being payable at a future date?
Which negotiable instrument is characterized by being payable at a future date?
What does a time instrument indicate about payment?
What does a time instrument indicate about payment?
In the context of negotiable instruments, what role does the drawer play in a draft?
In the context of negotiable instruments, what role does the drawer play in a draft?
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