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Banker's acceptance
A short-term negotiable debt instrument issued by a non-financial firm in the form of a draft that is accepted by a bank, which agrees to pay a stated amount at maturity in return for a fee.
In many countries other than Canada, banker's acceptances are used mostly in international trade. In Canada, they are used more broadly, to the point where futures contracts are taken out on them.
Translations
Synonyms and variations
- BA
- Bank acceptance
- Bankers' acceptance