Bankers' acceptances:
A)can be sold in the open market.
B)are non-negotiable instruments.
C)are always sold at a price above par value.
D)if sold,erases the issuer's obligation to pay off at maturity.
E)never qualify for discounting at the Federal Reserve Banks.

Question

Quizplus · Accepted Answer

Bankers' acceptances can be sold in the open market to investors who are willing to pay a price for the security based on its perceived creditworthiness and other factors. This allows the holder of the security to receive cash before the maturity date and transfer the risk of non-payment to another party.

Bankers' Acceptances