The bankers acceptance is a two-armed instrument with one branch in financing and the other in ________________________.
A) sales
B) investment
C) corporate guarantees
D) promissory notes

Question

Quizplus · Accepted Answer

The first arm of the bankers acceptance is the financing aspect, which provides short-term credit to the borrower. The second arm is the investment aspect, which involves investors buying the bankers acceptance and holding it to maturity for the return on investment. Therefore, option B, investment, is the correct choice to complete the sentence.

The Bankers Acceptance Is a Two-Armed Instrument with One Branch