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:

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on shared characteristics.

Competitive Advantages

Unique attributes or circumstances that allow a company to outperform its competitors, such as cost structure, product quality, brand, or distribution network.

Target Market

A specific group of consumers at whom a company aims its products and services, characterized by similar demographics, interests, or needs.

Market Segmentation

The division of a broad market into distinct subsets of consumers who have common needs, interests, and priorities, to tailor marketing strategies to those segments.