Use the Information to Answer the Following Question(s)

question 2

Multiple Choice

Use the information to answer the following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 22.1. ________ is an unsecured promissory note.

• A)A banker's acceptance
• B)An overdraft
• C)A securitized loan
• D)Commercial paper

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Definitions:

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