The all-in-rate a bank charges its customer(s) for accepting drafts includes both the discount rate and the acceptance commission.

Question

Quizplus · Accepted Answer

The all-in-rate charged by banks includes both the discount rate (which is the interest charged for advancing funds and is based on the time period for which the bank advances the funds) and the acceptance commission (which is the fee charged by the bank for accepting the draft on behalf of the customer). Therefore, the statement is true.

The All-In-Rate a Bank Charges Its Customer(s) for Accepting Drafts