Which of the following about bank bill financing facility is NOT correct?Group of answer choicesA bill rollover facility is an arrangement whereby the bank agrees to accept and discount new commercial bills for an issuer at each maturity date.The bank agrees to discount bills up to the agreed amounts with a fixed yield over the life of the rollover facility.The yield at which the bill is discounted depends partly on the credit rating of the party that incurs the liability.Bills issued via a rollover facility incorporate the higher credit standing of the bank acceptor.
Question
Which of the following about bank bill financing facility is NOT correct?Group of answer choicesA bill rollover facility is an arrangement whereby the bank agrees to accept and discount new commercial bills for an issuer at each maturity date.The bank agrees to discount bills up to the agreed amounts with a fixed yield over the life of the rollover facility.The yield at which the bill is discounted depends partly on the credit rating of the party that incurs the liability.Bills issued via a rollover facility incorporate the higher credit standing of the bank acceptor.
Solution
Without the specific options, it's hard to determine which statement about bank bill financing facility is NOT correct. However, based on the given information, all the statements seem to be generally accurate.
- A bill rollover facility is indeed an arrangement where the bank agrees to accept and discount new commercial bills for an issuer at each maturity date.
- The bank does agree to discount bills up to the agreed amounts with a fixed yield over the life of the rollover facility.
- The yield at which the bill is discounted does depend partly on the credit rating of the party that incurs the liability.
- Bills issued via a rollover facility do incorporate the higher credit standing of the bank acceptor.
If there's a specific statement that seems incorrect, it would be helpful to have more context or information.
Similar Questions
Which of the following statements about bills is NOT correct?Group of answer choicesThe drawer has a liability with a bank-accepted bill to pay face value to the acceptor bank.There is an active secondary market in bank-accepted bills.Once a bill has been discounted into the marketplace, the cost of funds will vary for the issuer.At maturity for a bank-accepted bill, the acceptor will pay face value to the holder.
Which of the following statements is CORRECT?Group of answer choicesA bank-accepted bill is regarded by market participants as equivalent to a bank-endorsed bill.The issuer of a bank-endorsed bill has to pay regular interest payments to the holder, unlike with a bank-accepted bill.The issuer of the bank-accepted bill will repay the holder of the bill directly at maturity.A bank bill is a negotiable instrument.
Multiple Choice QuestionIf the corporation fails to make either interest payments or repayment at maturity, debenture bondholders become:Multiple choice question.top dollar creditors.specific creditors.general creditors.bottom dollar creditors.
Multiple Choice Question_____ is when suppliers allow a business to take possession of needed goods and pay for them at a later date or in installments.Multiple choice question.CollateralTrade creditBarteringA mortgage
Multiple Choice QuestionEarly payment discounts offered to credit customers increase cash flow for the firm and ______.Multiple choice question.reduce the firm's profitabilityincrease the firm's profitabilitynegatively affect the firm's credit ratingreduce on-time payments
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.