Definitions for "Bankers Acceptances"
A money market instrument used to finance international and domestic trade. They are checks drawn on a bank by an importer or exporter of goods and represent a bank s unconditional promise to pay the face amount of the note at maturity (which is normally less than three months).
Short-term notes "accepted" or guaranteed by a bank for eventual payment.
Are money market instruments which are used to finance import or export transactions. These instruments are essentially checks and represents a bank's promise and ability to pay the face or principal amount on the stipulated maturity date. Maturities are generally less than 3 months. Bankers Acceptances are viewed as money market instruments.