Final answer:
The method of payment also known as a "draft" is "documentary collection." Thus the correct option is 2.
Step-by-step explanation:
Documentary collection, among the listed methods of payment, is also referred to as a "draft." This method involves the exchange of documents, such as bills of exchange, between the seller's bank and the buyer's bank. Essentially, it is a transaction where the exporter entrusts the collection of payment to their bank, which forwards the shipping documents to the importer's bank along with instructions for payment.
This process is often utilized when there is mutual trust between the buyer and the seller but still necessitates documentary evidence for the goods' transfer and payment.
Unlike a letter of credit, which involves a bank's guarantee of payment to the seller upon presentation of compliant documents, documentary collection doesn't offer the same level of assurance. The buyer can opt to pay upon receipt of the documents (documents against payment - D/P) or with an agreed-upon timeline (documents against acceptance - D/A), but this method doesn't provide the same level of security as a letter of credit.
Therefore, "documentary collection" is the method synonymous with a "draft" due to the drafting of payment instructions through shipping documents.
Therefore, the correct option is 2.