For a drawee to be obligated to honor a time draft, the drawee must be obligated to the drawer by

A) a stated time in the future.
B) an international trade agreement.
C) a commercial money market contract.
D) an account agreement or a debtor-creditor relationship.

Time Draft

A written order to pay a specified amount of money at a future date.

Debtor-Creditor Relationship

A financial relationship where one party (the debtor) owes a debt to another party (the creditor).

Drawee

The drawee is the party, usually a bank, required to pay the monetary amount stated on a draft or check upon its presentation.