Vidyalelo
Management · Q435

International Finance and Treasury

Graduate and Post Graduate · Management · question 435

Q435

Bankers acceptance which is usually time draft is fully backed by

A.
commercial banks
Answer
B.
Swiss banks
C.
agriculture banks
D.
functional banks

Answer: Option A

Solution

Answer: Option A
Solution:
Bankers acceptance which is usually time draft is fully backed by commercial banks. Commercial banks make money by providing loans and earning interest income from those loans.