Which of the following statements about bank bills is incorrect?
A) The drawer is the party that issues the bill.
B) The acceptor is the party that has primary liability to repay the face value of the bill.
C) The payee is the party that receives the borrowed funds when the bill is initially issued.
D) The discounter is the party that repays the acceptor at maturity.

Question

Quizplus · Accepted Answer

The discounter is the party that purchases the bill at a discount from the face value and receives repayment from the acceptor at maturity. The incorrect statement is that the discounter repays the acceptor at maturity.

Which of the Following Statements About Bank Bills Is Incorrect