Which of the Following Is True of a Trade Acceptance

question 72

Multiple Choice

Which of the following is true of a trade acceptance?

• A) The buyer is the payee.
• B) The seller is both the drawer and payee.
• C) The draft is countersigned by the drawee's bank.
• D) The draft is only as good as the drawer's creditworthiness.

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Definitions:

Marginal Benefit

The uplift in satisfaction or value derived from the consumption of an additional unit of a product or service.

Marginal Cost

An additional expense incurred from the production or acquisition of one more unit of a good or service.

Efficiency

The ability of a system or process to achieve a goal using the least amount of resources possible.

External Benefits

Positive effects experienced by third parties or the broader society as a result of an economic transaction or activity that are not reflected in market prices.