Drafts that are backed by banks and payable to sellers of goods or services are called __________?

Q: Drafts that are backed by banks and payable to sellers of goods or services are called __________?

Banker’s acceptance - A banker’s acceptance is a short-term draft drawn on a bank and guaranteed by it. It is payable to the seller of goods or services at a future date, providing security to the seller and facilitating trade finance. These instruments are commonly used in domestic and international commerce to ensure payment.

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Banker’s acceptance - A banker&rsquo;s acceptance is a short-term draft drawn on a bank and guaranteed by it. It is payable to the seller of goods or services at a future date, providing security to the seller and facilitating trade finance. These instruments are commonly used in domestic and international commerce to ensure payment.

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