The acceptance fee in relation to a commercial bill is the:
A)fee for drawing up the bill facility.
B)discounter's fee for taking on risks associated with the bill facility.
C)drawer's fee for taking on risks associated with the bill facility.
D)acceptor's fee for taking on risks associated with the bill facility.

Question

Quizplus · Accepted Answer

The acceptance fee is the fee paid by the acceptor of a commercial bill for taking on the risks associated with the bill facility. This fee compensates the acceptor for taking responsibility for payment of the bill on the due date, regardless of whether or not the drawer is able to pay.

The Acceptance Fee in Relation to a Commercial Bill Is