A Sight Draft Is Payable on Presentation to the Drawee;

question 55

True/False

A sight draft is payable on presentation to the drawee; a time draft allows a delay in payment.

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade, such as tariffs or quotas, encouraging international commerce.

Imported

Brought into a country from abroad for the purpose of selling.

Net Welfare Loss

Describes the reduction in social welfare, often resulting from inefficiencies such as taxes, subsidies, tariffs, or monopolies, which distort market equilibrium.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.