Which of the Following Statements Is Not True

question 11

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 A and C.

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Definitions:

Price Floor

a government-imposed limit on how low a price can be charged for a good or service, intended to prevent prices from falling too low.

Black Markets

Illicit markets that operate outside of authorized legal frameworks, often involving the trading of banned or restricted goods and services.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.

Illegal Exchanges

Transactions that violate the law, such as the trade of banned substances or services.