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.

For infrequent bills, ___________________________________________________.Which of the following statement is correct?A.one has to put aside the total value of the bills over the year at the begininng of the year and use that reserce to pay the bills when they are due.B.One delays the payment of the bills until one has enough money in the account from the different income.C.one has to put aside an average fortnightly value (calculated over a year if some bills are only once a year) every fortnight and use that reserce to pay the bills when they are due.D.one pays each bill when it is due directly from the income of that fortnight.

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.

In accounting for the exchange bill, when the drawer draws a bill and drawee accepts it, drawee returns the bill to the drawer after accepting. Now, the drawer is the holder of the bill and he can use this bill in the following different ways except:a.By endorsing the billb.By sending the bill to the payeec.By discounting the billd.By holding the bill till the due date

In relation to a bank bill, endorsement means:Group of answer choicesthat the acceptor and endorser make an agreement as to who is liable for the repayment of the face value to the final holder of the bill.if the acceptor cannot repay the face value to the holder at maturity, it must draw a bill to meet its obligations.the endorser has a contingent liability when the bill matures.the drawer agrees to pay an additional fee to the acceptor for guaranteeing the repayment.