The correct answer is: B. Banker’s acceptance
A banker’s acceptance is a draft drawn on and accepted by a bank. It is a type of negotiable instrument that is used in international trade. Banker’s acceptances are typically used to finance the import or export of goods.
A customer’s acceptance is a draft drawn by a customer on a bank. It is not backed or guaranteed by the bank, and is therefore considered to be a riskier investment than a banker’s acceptance.
A federal acceptance is a type of banker’s acceptance that is issued by the Federal Reserve Bank. Federal acceptances are used to finance the sale of government securities.
A treasury acceptance is a type of banker’s acceptance that is issued by the U.S. Treasury. Treasury acceptances are used to finance the sale of Treasury bills, notes, and bonds.
Here is a table that summarizes the key differences between the four types of acceptances:
| Type of acceptance | Issuer | Backed or guaranteed by a bank? | Used in international trade? |
| — | — | — | — |
| Banker’s acceptance | Bank | Yes | Yes |
| Customer’s acceptance | Customer | No | No |
| Federal acceptance | Federal Reserve Bank | Yes | No |
| Treasury acceptance | U.S. Treasury | Yes | No |