Out of the options given, the bank draft is commonly used in home trade.
Home trade refers to the buying and selling of goods and services within the boundaries of a country. It involves transactions between individuals or companies located within the same country. In such transactions, a bank draft is a commonly used payment instrument.
A bank draft is a payment order issued by a bank on behalf of its customer, instructing another bank to pay a specified sum of money to a third party. It is a secure and convenient payment method for home trade transactions, as it eliminates the risk of carrying large sums of cash and provides a guarantee of payment to the seller.
Other payment instruments, such as a bill of lading or a certificate of origin, may be used in international trade to facilitate the shipment of goods across borders. A letter of credit and a documentary credit are also payment instruments commonly used in international trade to ensure that the seller is paid for the goods or services they provide.