What Is a Trade Draft

question 128

Multiple Choice

What is a trade draft?

• A) A type of secured loan with trade products serving as collateral.
• B) A means of pledging accounts receivable.
• C) An agreement to meet certain terms,which are attached to the shipment,and which must be signed before the goods are delivered to the buyer.
• D) A legal agreement promising to pay for the goods,which is signed by the buyer before the seller will ship the goods.
• E) A standing agreement between a bank and a firm.

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Definitions:

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