2006-08-01 04:35:06 · 5 answers · asked by azza 1 in Business & Finance ➔ Investing
A bankers acceptance (BA) is a money market instrument, an investment sold in the short-termmoney market. It is basically when a bank agrees to pay the holder a sum of money on a set date.
A bankers acceptance is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the bearer of the draft. Upon acceptance, which occurs when an authorized bank employee stamps the draft "accepted" and signs it, the draft becomes a primary and unconditional liability of the bank. If the bank is well known and enjoys a good reputation, the accepted draft may be readily sold in an active market.
2006-08-01 06:28:16 · answer #1 · answered by Jimmy T 2 · 0⤊ 0⤋
This is a document similiar to a check. Only that if the person or organisation writing the check dishonours the check, the bank, by virtue of accepting the check (actually it is not called a check, it is a bill of exchange, but the look and feel are similiar to a check, just a bigger size check) is obliged to honor the payment.
2006-08-01 11:47:25 · answer #2 · answered by Pankaj S 2 · 0⤊ 0⤋
A credit investment by a non-financial institution guaranteed by a bank. So what about them?
2006-08-01 11:40:14 · answer #3 · answered by 4XTrader 5 · 0⤊ 0⤋
are you trying to get a loan or something from a bank?
2006-08-01 11:38:24 · answer #4 · answered by Sufi 7 · 0⤊ 0⤋
what?
2006-08-01 11:37:42 · answer #5 · answered by ~Saratini~ 4 · 0⤊ 0⤋