Which of the Following Statements Is Not True

question 22

Multiple Choice

Which of the following statements is not true?

• A) Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered.
• B) When a banker's acceptance is discounted in the secondary market it becomes a commercial note.
• C) Sight drafts require immediate payment.
• D) Banker's acceptances arise when a bank guarantees payment on a commercial draft.
• E) Both Commercial drafts represent a way to obtain a credit commitment from a customer before the goods are delivered; and Sight drafts require immediate payment.

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Definitions:

Causal Attribution

The process of assigning causes or reasons to behaviors and events, explaining why things happen or why certain actions were taken.

Covariation Model

A psychological theory proposing that people determine the cause of an event based on the pattern of covariation between the event and the potential causes across time and circumstances.

Discreteness

Pertains to the characteristic of being separate and distinct in nature, often referring to the classification of data or phenomena into distinct categories.

External Attribution

The process of inferring that a person's behavior is due to situational factors, rather than their own personal characteristics.