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:

Coverdell Education

A savings account designed specifically for paying education expenses, with tax advantages, for a designated beneficiary.

AGI

Adjusted Gross Income, which is the total gross income minus specific deductions allowable by the IRS, forming the basis for calculating taxable income.

Maximum Contribution

Maximum Contribution refers to the highest amount that an individual or entity can contribute to a retirement plan or investment vehicle in a given year.

Employer-Sponsored Plans

Retirement or health benefit plans offered to employees by their employer, including 401(k) and pension plans.