Which of the Following Functions Does a Draft NOT Perform

question 13

Multiple Choice

Which of the following functions does a draft NOT perform?

• A)to provide written evidence,in clear and simple terms,of a financial obligation
• B)to enable both parties to potentially reduce their costs of financing
• C)to provide a negotiable and unconditional instrument
• D)to offer the exporter greater safeguards than a letter of credit in securing repayment from the importer

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Definitions:

Marginal Social Cost

The cost to society of producing one additional unit of a good or service.

Private Supply

The provision of goods or services by businesses or individuals rather than by the government.

Marginal Social Cost

The total cost society pays for the production of an additional unit of a good or service, including both private costs and any external costs.

Public Beach

A beach area open to the general public, often maintained by a governmental entity, providing access to the shoreline without private ownership restrictions.