What type of instrument is a bankers' acceptance?

A bankers' acceptance is a financial instrument that represents a promise by a bank to pay a specified amount to a third party at a future date. It is essentially a time draft that is accepted by a bank, indicating the bank's commitment to pay on behalf of the issuer, often used in international trade.

This instrument serves as a short-term investment tool that is considered low-risk, as it is backed by the credit of both the bank and the party whose obligation it is. Bankers' acceptances are typically used by businesses to facilitate transactions and manage cash flow, and they can also be traded in the secondary market, providing liquidity to the holders.

In contrast, the other options represent different types of financial instruments that do not have the same characteristics as bankers' acceptances. For example, an American Depository Registry refers to a means of holding foreign securities in the United States, a certificate of deposit is a time deposit offered by banks that pays interest, and a collateralized mortgage obligation is a type of mortgage-backed security. Each of these serves distinct purposes and functions in the financial markets, highlighting why bankers' acceptance is the correct choice in this context.