Which of the Following Statements About Bill Acceptance Facilities Is

question 28

Multiple Choice

Which of the following statements about bill acceptance facilities is incorrect?

• A) When a bank discounts a bill for the issuer, it buys it.
• B) When a bank that holds a bill rediscounts it the bank onsells it.
• C) When a bank acts as an acceptor it will pay the face value of the bill to the holder at maturity.
• D) If interest rates change before a bank bill matures, the bank can change the interest rate on it.

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Definitions:

Electronic Funds Transfers

A system that allows the transfer of money between accounts via electronic signals, removing the need for physical exchanges.

Cash Disbursements

Outflows of cash for expenses, or payments made by a business during a specific period, such as paying suppliers, employees, or other expenditures.

Financial Statements

Consolidated documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.