A Bankers' Acceptance Differs from a Trade Draft in That

question 105

Multiple Choice

A bankers' acceptance differs from a trade draft in that:

• A)it is drawn on a bank rather than on an importer
• B)it is always accompanied by a bank letter of credit
• C)its acceptance depends entirely on the goodwill of the importer
• D)there is no difference

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Definitions:

Fiduciaries

Individuals or organizations that are entrusted to manage assets or wealth on behalf of another party and are required to act in the best interests of the beneficiary.

Duty of Care

The legal obligation to ensure the safety or well-being of others by taking reasonable precautions or actions to avoid acts of negligence.

Duty of Diligence

The obligation to perform work with careful attention, effort, and thoroughness, particularly in a professional or legal context.