When Does the Drawee Become Liable for Payment of a Draft

question 1

Multiple Choice

When does the drawee become liable for payment of a draft?

• A) when the drawer signs it
• B) automatically upon its creation
• C) upon accepting it
• D) upon the performance of the underlying obligation

---

Definitions:

Full Employment GDP

The output level of an economy when all available resources are employed efficiently, corresponding to a situation with no cyclical unemployment.

Classical Range

In economics, refers to the level of output where all resources are fully employed, and prices are flexible, historically associated with the Classical theory of economics.

Savings

Money that is set aside from disposable income or after personal expenses have been covered, often put into a deposit or an investment for future use.

Wealth Effect

The change in spending and consumption patterns caused by changes in perceived wealth.