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

question 44

Multiple Choice

Which of the following statements concerning drafts is (are) correct?

• A)Drafts require the firm to keep larger balances in its disbursement account.
• B)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.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

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Definitions:

Purely Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, where no single firm can influence the market price.

Resource Market

The marketplace where the inputs required for the production process (labor, raw materials, capital etc.) are bought and sold.

Wage Taker

An individual or entity that accepts the prevailing wage rates in the market due to the inability to influence them.

Wage Rate

A set amount of money given by an employer to an employee for services rendered, usually specified on an hourly or annual basis.