A bank bill:
A)is accepted by institutions other than banks.
B)is regarded as a lower quality bill than a non-bank bill.
C)includes both bank-accepted and bank-endorsed bills.
D)is not normally endorsed if it is sold after being bought in the secondary market.

Question

Quizplus · Accepted Answer

A bank bill includes both bank-accepted and bank-endorsed bills. This means that it has been accepted by a bank and may also have been endorsed by a bank, indicating their belief in its credibility. Bank bills are commonly used in financial transactions and are generally regarded as high-quality bills. They can be accepted by institutions other than banks, such as large corporations or government agencies. If a bank bill is sold in the secondary market, it may be endorsed again by the new owner, depending on the terms of the sale.

A Bank Bill