Which of the Following Does Not Apply to a Bill

question 22

Multiple Choice

Which of the following does not apply to a bill of exchange?

• A)It is a discount security.
• B)It must have an acceptor.
• C)It is a commercial bill.
• D)It is a promissory note.

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Definitions:

Prime Interest

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference rate for loans.

Float

The time difference between writing a check and the actual withdrawal of funds from the bank account, or in securities trading, it's the number of shares available for trading by the general public.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Exit Price

The amount one would earn from selling an asset or the cost to transfer a liability during a well-organized sale between parties in the market.