When a bill is negotiated to a bank, it is said be?
Answer Details
When a bill is negotiated to a bank, it is said to be discounted. Discounting a bill means that the holder of the bill (the beneficiary) transfers the right to receive the payment to the bank, in exchange for immediate payment of a lesser amount (the discounted value). The bank then becomes the holder of the bill and assumes the risk of collecting the full amount from the debtor.