Reference no: EM132778264

Problem 1: After being held for 60 days, a 120 day 12% interest bearing note receivable was discounted at a bank at 15%. The proceeds from the bank equal to:

A. maturity value less the discount at 12%

B. maturity value less the discount at 15%

C. face value less the discount at 12%

D. face value less the discount at 15%

E. none of the above

Problem 2: Which is not true? When a customer's note is discounted at a bank, the ____ is said to be the _____ of the note.

A. customer, maker

B. company, payee

C. company, endorser

D. bank, endorsee

E. none of the above