Money Markets

Bankers' Acceptance

Definition

What is Bankers' Acceptance?

A time draft guaranteed by a bank, commonly used to finance trade.

Example in practice

An exporter discounts a banker's acceptance before its maturity date.

Keep learning

A short-term government debt instrument usually issued at a discount and repaid at face value.

Short-term unsecured debt issued by a company.

A time deposit or tradable bank instrument that pays interest over a stated term.

A portfolio of debt instruments with maturities spread across regular intervals.

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