Banker's acceptances have the following characteristics except:
A) typically maturities of 1 to 5 years.
B) fully taxable at the federal, state, and local levels.
C) are sold on a discount basis and payable to the bearer.
D) are not "issued" in predetermined denominations.

Question

Quizplus · Accepted Answer

Banker's acceptances typically have maturities of 1 to 180 days, not 1 to 5 years. The other options are not characteristics of banker's acceptances. They are typically sold on a discount basis, payable to the bearer or the holder, and can be issued in various denominations. Additionally, they are generally exempt from state and local taxes but subject to federal taxes.

Banker's Acceptances Have the Following Characteristics Except