Which of the following statements regarding "bankers' acceptances" is true?
I.Bankers' acceptances are used in overseas trading.
II.Bankers' acceptances are bought and sold on a discount basis.
III.Bankers' acceptances are guaranteed by the bank.
A)I only
B)II only
C)III only
D)I, II, and III

Question

Quizplus · Accepted Answer

Bankers' acceptances are indeed used in international trade to facilitate transactions between buyers and sellers in different countries. They are sold on a discount basis, meaning they are sold for less than their face value and redeemed at face value at maturity, providing the buyer with a return on the investment. Additionally, they are guaranteed by the bank that issues them, which adds a level of security for the holder.

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