Which One of the Following Statements Is Correct About Banker's

question 92

Multiple Choice

Which one of the following statements is correct about banker's acceptances?

• A) They are equivalent to a sight draft.
• B) They represent the norm for installment sales.
• C) The bank guarantees payment of the invoice.
• D) The bank retains title to the merchandise.

---

Definitions:

Charter Issued

The granting of legal authorization or a set of rights and privileges from a government or authority to create and operate an organization.

Incorporator

An individual or entity that establishes and files the legal documentation required to form and register a corporation.

Articles of Incorporation

A document filed with a state government to legally document the creation of a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can enter into contracts, own assets, sue and be sued.