Which of the following is a short-term promissory note issued by a corporation, bearing the unconditional guarantee of a major bank?
A) banker's paper
B) commercial paper
C) banker's acceptance
D) commercial acceptance

Question

Quizplus · Accepted Answer

A short-term promissory note issued by a corporation, bearing the unconditional guarantee of a major bank is called a banker's acceptance. Banker's paper and commercial acceptance are not commonly used terms in finance, and commercial paper does not have the unconditional guarantee of a major bank.

Which of the Following Is a Short-Term Promissory Note Issued