A Time Draft That Is Drawn on and Accepted by the Buyer

question 28

Multiple Choice

A time draft that is drawn on and accepted by the buyer is called a ______.

• A) banker's acceptance
• B) banker's bourse
• C) bill of lading
• D) certificate of deposit
• E) trade acceptance

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on.

Scarce Goods

Products or resources that are limited in availability and cannot meet all the demands of consumers.

Comparative Advantage

The ability of a country or firm to produce a specific good or service at a lower opportunity cost than its competitors.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.