banker's acceptance
(BA)
Noun
A negotiable short-term high-quality pure discount money market instrument in the form of a time draft authorized under a letter of credit drawn on a bank by its client “in respect of current trade” and backed by an accepting bank’s unconditional promise (“acceptance”) to pay the draft’s face value to a beneficiary at maturity.
Synonym(s):
- acceptance; bank acceptance; three-ways-out paper.
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