Banks improve the credit risk of bills by accepting them.

Name: Banks improve the credit risk of bills by accepting them.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

Banks do improve the credit risk of bills by accepting them as they provide a guarantee that the bill holder will get paid. When a bank accepts a bill, it becomes the primary debtor and takes on the responsibility of paying the bill on its due date. This reduces the credit risk for the holder of the bill and makes it more attractive to potential buyers or investors.

Banks Improve the Credit Risk of Bills by Accepting Them