Which of the following is an attribute of a banker's acceptance?
A) It is an unsecured note of issuer with large denominations.
B) It has a maturity of 1 day to 3 years.
C) Its risk and return is higher than U.S. Treasury issues.
D) It is issued by a corporation with a high credit standing.

Question

Quizplus · Accepted Answer

A banker's acceptance is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. It typically has a lower risk and return compared to U.S. Treasury issues, which are considered risk-free.

Which of the Following Is an Attribute of a Banker's