Which of the Following Is True of Bankers' Acceptances

question 20

Multiple Choice

Which of the following is true of bankers' acceptances?

• A)There is no secondary market for them.
• B)They have high default risk.
• C)They are analogous to standby letters of credit in the domestic commercial paper market.
• D)Their principal, but not their interest, is guaranteed by the International Monetary Fund.

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Definitions:

Intentional Wrongful Disclosure

The deliberate sharing of confidential or protected information without authorization.

Ethical Issues

Concerns or problems that arise in the realm of morality and values, affecting decisions and actions in personal and professional contexts.

Power of Attorney

A formal document granting one individual the power to represent another in matters of law or finance.

Unilateral Mistake

This occurs when only one party to a contract is mistaken about a fundamental fact of the contract, which can affect the enforceability of the contract.