A bill of exchange issued by a company and accepted by a bank, containing the promise of payment of a specified sum at a specified time. The customer thus receives a loan from the bank. – Bankers’ acceptances can also be used as a means of payment for settling domestic liabilities or as a means of raising money – then also called a finance acceptance (a time draft honored by a bank, and classically used in international trade. After acceptance, the draft becomes an unconditional liability of the bank. The holder of the draft can sell it for cash at a discount to a buyer who is willing to wait until the maturity date for the funds in the deposit). – See private discount rate.
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Professor Dr. Eckehard Krah, Dipl.rer.pol.
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