A Banker's Acceptance Is a Low-Risk Security Because at Least

question 305

True/False

A banker's acceptance is a low-risk security because at least two, and sometimes three, parties may be liable for its payment at maturity.

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Definitions:

Logical Arguments

Reasoning where premises are systematically connected to arrive at a justified conclusion.

Cognitive Dissonance Theory

A theory suggesting that individuals experience psychological discomfort when they hold two or more contradictory beliefs, values, or ideas and are motivated to resolve this inconsistency.

Attribution Theory

The theory concerned with how individuals deduce the causes of their own and others' behavior.

Social Exchange Theory

The theory that our social behavior is an exchange process, the aim of which is to maximize benefits and minimize costs.