Which of the Following Statements Is TRUE with Respect to Bills

question 15

Multiple Choice

Which of the following statements is TRUE with respect to bills of exchange?

• A)A bill of exchange must be drawn upon a bank, a trust account, or some other financial institution.
• B)A bill of exchange is usually used only for relatively small domestic transactions.
• C)Once a bill of exchange is accepted, the drawer becomes known as the acceptor.
• D)Unlike a promissory note, a bill of exchange cannot be used to create a credit arrangement between the parties.
• E)Whereas a cheque must be drawn on a bank, a bill of exchange may be drawn on a bank or anyone else.

---

Definitions:

Instinct-Based Perspective

A viewpoint emphasizing the role of innate, biological drives in guiding behavior and decisions.

Evolutionary Perspective

An approach that examines human thoughts, feelings, and behaviors through the lens of natural selection and survival advantage.

Cognitive Perspective

A psychological approach that focuses on how people perceive, think about, and understand their worlds.

Information Processor

An entity, often a computer or the human brain, that receives, processes, stores, and outputs information.