The face value of a note refers to the amount
A) that can be received if sold to a factor.
B) borrowed plus interest received at maturity from the maker.
C) that is identified on the formal instrument of credit.
D) remaining after a service charge has been deducted.

Question

Quizplus · Accepted Answer

The face value of a note refers to the amount that is identified on the formal instrument of credit, such as a promissory note or bond. It is the amount that the issuer of the note is obligated to pay to the holder at maturity, regardless of any interest or fees.

The Face Value of a Note Refers to the Amount