A banker’s acceptance, which is a time draft, is fully backed by ___________?

Q: A banker’s acceptance, which is a time draft, is fully backed by ___________?

Commercial banks - A banker’s acceptance is a short-term credit instrument used in international trade. It is a time draft guaranteed by a commercial bank, meaning the bank promises to pay the holder the specified amount at maturity. This backing by a commercial bank makes banker’s acceptances low-risk and highly trusted in trade transactions.

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Commercial banks - A banker&rsquo;s acceptance is a short-term credit instrument used in international trade. It is a time draft guaranteed by a commercial bank, meaning the bank promises to pay the holder the specified amount at maturity. This backing by a commercial bank makes banker&rsquo;s acceptances low-risk and highly trusted in trade transactions.

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