Question

An instrument through which a bank retains title to goods until they are paid for is called a (n):a.) bill of exchangeb.) commercial letter of creditc.) trust receiptd.) documentary draft

Answer 1

c.) trust receipt

Step-by-step explanation:

A trust receipt is a receipt i.e. to be considered a financial document attended by the bank and the business who has received the goods delivery and unable to pay the amount unless the inventory is sold

Here, the bank retains the goods unless it is to be paid

so this scenario represents the trust receipt and the same is to be considered

hence, the correct option is c. trust receipt