A non-bank bill may be more difficult to discount than a bank bill because:
A)the interest rate is recalculated each time a new bill is issued.
B)bank bills are regarded as inferior quality.
C)there is a cost associated with the bill facility.
D)the financial stature of the acceptor or endorser is not well regarded.

Question

Quizplus · Accepted Answer

Non-bank bills may be more difficult to discount than bank bills because the financial stature of the acceptor or endorser is not as well-regarded as that of a bank. Banks are considered to be more trustworthy and have a higher credit rating than other entities, making their bills easier to discount. Other factors mentioned in the options do not necessarily make a non-bank bill harder to discount.

A Non-Bank Bill May Be More Difficult to Discount Than