Which of the Following Money Market Investments Is a Draft

question 67

Multiple Choice

Which of the following money market investments is a draft written by the borrower and guaranteed by the bank on which the draft is drawn? It is typically used in international trade transactions. The borrower is an importer who writes the draft in payment for goods.

• A) Treasury bills
• B) repurchase agreement
• C) certificates of deposit
• D) banker's acceptance
• E) commercial paper

---

Definitions:

Financial Position

A snapshot of what a company owns and owes, as well as the amount invested by shareholders, often represented by the balance sheet.

Fiduciary Fund

A fund held by an entity in a trustee or agent capacity for others and is often used for specific purposes or persons, such as pension funds or estates.

Reserve Fund

A savings or fund set aside for future expenses, emergencies, or capital projects.

Endowment Fund

An endowment fund is a financial asset, in the form of donated funds or property, invested to generate income for a specific purpose, usually non-profit.