When Does the Drawee Become Liable for Payment of a Draft

question 45

Multiple Choice

When does the drawee become liable for payment of a draft?

• A)When the drawer signs it.
• B)Automatically upon its creation.
• C)Upon accepting it.
• D)Upon the performance of the underlying obligation.

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Definitions:

Boss

A person who is in charge of a worker, group, or organization, responsible for directing and overseeing the work of others.

General

Relating to all members or elements in a group or category, without specifying or excluding any.

Grapevine

Informal and unofficial communication channels within an organization, where information is often shared among employees without sanction or control by management.

Controversial

Pertains to issues or subjects that provoke public disagreement or debate.