Match the following terms with their definitions.
-Simple discount note
A)Number of days bank will wait for its money in the discount process
B)Cash paid on due date
C)The principal
D)Maturity value minus bank discount
E)A written promise
F)Bank deducts interest in advance
G)Signs the note
H)Rate bank charges in the discounting process
I)True rate of interest
J)Due date
K)Ability to borrow quickly
L)Amount bank charges in the discounting process
M)Maturity value greater than original note

Question

Quizplus · Accepted Answer

In a simple discount note, the bank deducts interest in advance from the principal amount.

Match the Following Terms with Their Definitions