When a Time Draft Is Presented to a Drawee,he or She

question 56

Multiple Choice

When a time draft is presented to a drawee,he or she signifies acceptance of it by

• A)delivering the goods immediately.
• B)paying the draft amount immediately.
• C)providing a collateral for the amount specified in the bill.
• D)writing or stamping a notice of acceptance on its face.
• E)selling the draft to an investor at a discount from its face value.

---

Definitions:

Extra Interest

Additional interest that may be charged due to various factors, such as late payments or changes in terms.

Late Payments

Payments made to a creditor after the due date has passed.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal balance of an investment or loan twice a year, leading to interest on interest.

Amortized

The process of gradually paying off a debt over a period of time through regular payments.