Which of the Following About Bank Bills Is Incorrect

question 29

Multiple Choice

Which of the following about bank bills is incorrect?

• A) For a bank bill, the drawer has the secondary liability to pay the holder of the bill at maturity.
• B) A commercial bank generally carries out the role of an acceptor on a bill.
• C) With a bank as an acceptor, it makes it easier to sell the bill at a higher yield.
• D) When the discounter discounts the face value of the bill they provide the funds to the borrower.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from profits.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, having proprietary interests and rights in the corporation.

Software Business

A commercial activity involved in the development, production, and sale of software products or services.