A bill of exchange can be sold to a financial intermediary for instant cash.

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Multiple Choice

A bill of exchange can be sold to a financial intermediary for instant cash.

Explanation:
Bills of exchange are negotiable instruments that can be exchanged for immediate cash by discounting with a bank or financial intermediary. When a holder discounts the bill, the bank pays cash now (usually less than the face value) and, in return, collects the full amount from the drawee at maturity. This provides liquidity quickly, which is why you can convert the bill into cash instantly. The cash received is the face value minus the discount for the period until maturity, not the full value, and you don’t have to wait until the bill matures to get funds.

Bills of exchange are negotiable instruments that can be exchanged for immediate cash by discounting with a bank or financial intermediary. When a holder discounts the bill, the bank pays cash now (usually less than the face value) and, in return, collects the full amount from the drawee at maturity. This provides liquidity quickly, which is why you can convert the bill into cash instantly. The cash received is the face value minus the discount for the period until maturity, not the full value, and you don’t have to wait until the bill matures to get funds.

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