In a bill acceptance facility:
A)the bank undertakes to accept bills drawn by the borrower up to a specified total amount.
B)the borrower undertakes to accept bills drawn by the bank for an unspecified total amount,usually determined by demand and supply.
C)the borrower undertakes to accept bills drawn by the bank up to a specified total amount.
D)none of the given options.

Question

Quizplus · Accepted Answer

In a bill acceptance facility, the bank agrees to accept bills of exchange drawn by the borrower up to a certain limit, providing a guarantee of payment to the holder of the bill. This facilitates trade and financing by ensuring that the seller receives payment.

In a Bill Acceptance Facility