56

All of the following statements about money market bills are correct EXCEPT:

Select one:

a. Once a bill has been discounted into the marketplace, the cost of funds will vary for the issuer as interest rates vary over the bill's lifetime.

b. The drawer of a bank-accepted bill has a liability to pay face value to the acceptor bank.

c. They are discount securities.

d. At maturity for a bank-accepted bill, the acceptor will pay face value to the holder.

e. There is an active secondary market for bank-accepted bills in Australasia.