What term describes drafts guaranteed by banks and payable to the seller of goods or services?

Money Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Money Marketsfinance-mcqs › money-markets
Published
12 May 2023
Last updated
28 May 2026

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Explanation

A banker's acceptance refers to a draft that is guaranteed by a bank and is payable to the seller of goods or services, ensuring payment security.

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