Which of the Following Statements Is INCORRECT

question 30

Multiple Choice

Which of the following statements is INCORRECT?

• A) Bankers' acceptances are more popular than commercial paper used in Canada as a short- term financing source.
• B) Banks are the ultimate guarantors for payments of bankers' acceptances.
• C) Bankers' acceptances can be traded in the secondary markets prior to their maturities.
• D) Bankers' acceptances are commonly used to finance goods sold with short payment terms.

---

Definitions:

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief, behavior or reasoning.

Market Outcomes

The results of interactions between buyers and sellers in a market, determining price levels and quantities of goods and services exchanged.

Marginal Cost

The additional outlay required for the production of an extra unit of a product or service.

Automobile

A wheeled motor vehicle used for transportation, typically carrying passengers.