A short-term financing instrument, which is issued at a discount in large denominations, with a maturity date of 30, 60, or 90 days, in which a bank guarantees the payments is best described as:
A) bank loan.
B) commercial paper.
C) bankers' acceptance.
D) money market instrument.

Question

Quizplus · Accepted Answer

Bankers' acceptances are short-term financing instruments that are issued at a discount and have a specified maturity date. They are often used in international trade and are guaranteed by a bank, making them a secure form of investment.

A Short-Term Financing Instrument, Which Is Issued at a Discount