Final answer:
The correct answer is D. First is true. S1: A person secondarily liable on the instrument is the one who is absolutely required to pay the instrument. S2: A check as a bill of exchange is not an assignment of funds with the bank to the credit of the drawer.
Step-by-step explanation:
The correct answer is D. First is true.
S1: A person secondarily liable on the instrument is the one who is absolutely required to pay the instrument. This statement is true because someone who is secondarily liable, such as an endorser or a guarantor, is legally obligated to pay the instrument if the primary party fails to do so.
S2: A check as a bill of exchange is not an assignment of funds with the bank to the credit of the drawer. This statement is false because when a check is issued, it serves as an instruction to the bank to transfer funds from the drawer's account to the payee's account. So, it is indeed an assignment of funds in the bank.