Bankers acceptances are backed only by the credit worthiness of the bank which guarantees the acceptance.

Name: Bankers acceptances are backed only by the credit worthiness of the bank which guarantees the acceptance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Bankers acceptances are not only backed by the creditworthiness of the issuing bank but also by the promise of the parties involved (typically the buyer and the seller in a trade transaction) to fulfill their respective obligations, making it a more secure financial instrument.

Bankers Acceptances Are Backed Only by the Credit Worthiness of the Bank