The all-in rate charged on banker's acceptances is higher than the rate that a bank would charge a creditworthy borrower for a regular loan.

Question

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The all-in rate charged on banker's acceptances is typically lower than the rate for a regular loan because banker's acceptances are considered low-risk, short-term instruments backed by the promise of the bank, making them more attractive and cheaper for creditworthy borrowers.

The All-In Rate Charged on Banker's Acceptances Is Higher Than