Which type of draft is payable upon presentment?

The correct answer is that a demand draft is payable upon presentment. A demand draft is an instrument that entitles the holder to receive payment immediately upon presenting it to the bank or the entity that issued it. This characteristic makes it distinct from other types of drafts.

For instance, a time draft requires the payment to be made at a specified date in the future rather than immediately. Bank acceptances, which are time drafts accepted by a bank, also have a payment timeline that is not immediate. Certified checks, while similar in some respects to demand drafts, are specific checks that the bank verifies and guarantees to have enough funds available at the time of presentation, but they are not classified as drafts in the same sense.

Thus, the immediate payment feature of a demand draft, where payment can be demanded at any time upon presentation, is what defines it as the type of draft that is payable upon presentment.