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A sight or demand draft,
drawn by one bank as drawer upon another bank as drawee.
Such an instrument is to be distinguished from a CASHIER'S CHECK.
purchasable at small fees by a bank's customers provide a highly acceptable
instrument of DOMESTIC EXCHANGE. For
funds would be readily provided by the bank draft of an interior bank, drawn
on its New
York City correspondent
bank, purchased by the interior bank's customer faced with the necessity
of payment in New York City ,
as compared to a local check.In
FOREIGN EXCHANGE, bankers' sight or demand drafts, drawn on balances maintained
with foreign bank correspondents, provide a demand form of payment in the
foreign currency concerned which may be available at spot rates if the distance
involved permits quick airmail arrival of the instruments.
Source: Encyclopedia of Banking & Finance (9h
Edition) by Charles J Woelfel
(We recommend this as work of authority.)
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