Match the Following Terms with Their Definitions

Multiple Choice

Match the following terms with their definitions.
-Effective rate

A) Number of days bank will wait for its money in the discount process
B) Cash paid on due date
C) The principal
D) Maturity value minus bank discount
E) A written promise
F) Bank deducts interest in advance
G) Signs the note
H) Rate bank charges in the discounting process
I) True rate of interest
J) Due date
K) Ability to borrow quickly
L) Amount bank charges in the discounting process
M) Maturity value greater than original note