banker's acceptance

noun

Meaning

A short-term debt instrument issued by a firm that is guaranteed by a commercial bank, promising to pay a specific amount at a future date.

Examples

The corporation used a banker's acceptance to finance its international trade transaction.
Investors often purchase a banker's acceptance because it carries the credit risk of the bank rather than the importer.

Synonyms: draft, bill of exchange, promissory note, commercial paper

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banker's acceptance

noun

Pronunciation: ˈbæŋkərz əkˈsɛptəns

Definition

A short-term debt instrument issued by a firm that is guaranteed by a commercial bank, promising to pay a specific amount at a future date.

Examples

The corporation used a banker's acceptance to finance its international trade transaction.
Investors often purchase a banker's acceptance because it carries the credit risk of the bank rather than the importer.

Synonyms of banker's acceptance

Words with a similar meaning to banker's acceptance:

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