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

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Definitions:

Quantity Demanded

The amount of a product that consumers are willing and able to purchase at a given price over a specified period of time.

Physical Examination

A comprehensive assessment of a person's physical condition, usually conducted by a healthcare professional.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market to restrain prices to a certain level.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.