Which of the Following Is Incorrect in Relation to Bill

question 48

Multiple Choice

Which of the following is incorrect in relation to bill financing?

• A) The drawer is the party seeking the funds.
• B) If a bank accepts the bill this enhances its credit quality.
• C) An issuer will seek to sell the bill in the market at the highest yield.
• D) Bills are sold at a discount to face value.

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Definitions:

Common Difference

The steady gap found between successive numbers in an arithmetic progression.

Common Ratio

In a geometric sequence, the consistent factor by which each term is multiplied to produce the next term.

Geometric Sequence

A geometric sequence is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Common Ratio

In a geometric sequence, the constant factor by which each term is multiplied to get the next term.