Which of the Following Statements Concerning Drafts Is (Are) Correct

question 35

Multiple Choice

Which of the following statements concerning drafts is (are) correct?
I. Drafts require the firm to keep larger balances in its disbursement account.
II. When a draft is transmitted to the firm's bank for collection, the bank must present the draft to the firm for acceptance before payment is made.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Satellite

A man-made satellite launched to circle the Earth or another celestial body to gather data or facilitate communication.

Microwave

Electromagnetic waves with frequencies between 300 MHz and 300 GHz, used in telecommunications, cooking, and radar technology.

Radio

A technology that uses radio waves to transmit and receive sound and other types of information.

Fiber

A type of material used in making textiles or a dietary component found in foods, or in technology, thin strands of glass or plastic used in fiber-optic communications.