Which of the following statements regarding a bank bill is correct?
A) A bank bill is not usually endorsed after it is sold for the second time in the secondary market.
B) Once a bank becomes an acceptor for a bill other financial institutions can buy and accept the same bank bill.
C) A bank bill may be both bank-accepted and bank-endorsed.
D) A bank-accepted bill tends to trade at slightly higher yields than bank-endorsed bills.

Question

Quizplus · Accepted Answer

A bank bill can indeed be both bank-accepted and bank-endorsed, which means a bank guarantees payment at the bill's maturity (bank-accepted) and may also endorse the bill to facilitate its sale or discounting (bank-endorsed).

Which of the Following Statements Regarding a Bank Bill Is