An Agreement Under Which One Party Agrees to Pay Drafts

question 44

Multiple Choice

An agreement under which one party agrees to pay drafts drawn by a creditor is called a: ______.

• A) contract of surety.
• B) guaranty contract.
• C) letter of credit.
• D) debtor's agreement.

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Definitions:

External Adjustment

The process by which an economy corrects imbalances in its balance of payments, through changes in exchange rates, demand, and supply in foreign exchange markets.

Investment Funds

Pools of capital that are allocated to various securities or assets, managed by professional investment managers, intended to generate returns for investors.

Economic Growth

The increase in the total output of goods and services in an economy over time, often measured as the percentage increase in real gross domestic product (GDP).

U.S. Interest Rates

The rates at which borrowers are charged or lenders are paid for the use of money in the United States, set by the Federal Reserve.