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Banker's Acceptance

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Banker's acceptance
A short-term credit investment created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.

Banker's Acceptance
Short-term debt obligations that are secured by banks. That is, a bank promises to pay a creditor if a borrower defaults. It is also called a documented discount note.

banker's acceptance
A short-term credit instrument created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks. These instruments have become a popular investment for money market funds. Also called acceptance.


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Time bill represents a banker's acceptance or bill of exchange that is not payable until some specific future time.
We could invest the money in a number of different types of marketable securities, such as commercial paper, negotiable certificates of deposits, banker's acceptances and United States Treasury bills among others.
government obligations, CDs, Banker's Acceptances, Commercial Paper, money market funds, and repurchase agreements collateralized by obligations of the U.
 
 
 
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