Which of the Following Is NOT an Important Attribute of a Bankers

question 17

Multiple Choice

Which of the following is NOT an important attribute of a bankers' acceptance?

• A)makes an unconditional promise to pay the holder of the draft a stated amount on a specified day
• B)effectively substitutes its own credit for that of a borrower
• C)creates a negotiable instrument that may be freely traded
• D)offers the holder a binding agreement to repayment by the exporter if the importer defaults

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Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, typically in a relationship where trust and confidence are essential.

Duty Of Care

An obligation to take steps to avoid foreseeable harm; an essential element for establishing liability in the tort of negligence.

Breach Of Fiduciary Duty

A legal violation that occurs when a trusted individual or entity fails to act in the best interests of those they owe a duty to.

Director

An individual appointed to the board of an organization, responsible for guiding its policy and direction.