Series 6 - Investment Company And Variable Contracts Products Representative Exam

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Which type of securities do some corporations in the import/export business use as a short-term time draft with a specified payment date drawn on a bank?

Commercial paper
A
Banker's acceptance
B
Jumbo CD
C
Subordinated debenture
D

Explanations

Certain corporations in the import/export business will often use banker's acceptances as a short-term time draft.

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