Which of the Following Statements Regarding "Bankers' Acceptances" Is True

question 15

Multiple Choice

Which of the following statements regarding "bankers' acceptances" is true?

• A)Bankers' acceptances are used in overseas trading.
• B)Bankers' acceptances are bought and sold on a discount basis.
• C)Bankers' acceptances are guaranteed by the bank.
• D)Bankers' acceptances are used in overseas trading, bankers' acceptances are bought and sold on a discount basis, and bankers' acceptances are guaranteed by the bank.

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Definitions:

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often preceded by insolvency.

Noncash Assets

Assets that cannot be easily converted to cash but hold value, such as real estate, equipment, and intellectual property.

Deficit

The amount by which expenses exceed income or costs exceed revenues.