Final answer:
The question deals with the liabilities of a check drawer. A check must be presented within a reasonable time to hold the drawer liable, and acceptance or certification of a check does not automatically discharge the drawer or endorsers from liability. The correct answer is that only Statement 1 is true.
Step-by-step explanation:
The student's question pertains to the liability of the drawer with regards to a check being presented for payment and what happens if a check is accepted or certified. S1 states that a check must be presented for payment within a reasonable time after its issue, otherwise the drawer will be discharged from liability. This is true. Banks view deposits as liabilities because they owe these funds to their customers. For instance, Safe and Secure Bank in the provided example has $10 million in deposits, which is owed to its customers.
S2 suggests that if the holder of a check gets it accepted or certified, the drawer and all endorsers are discharged from liability. However, this statement is not entirely accurate; typically, acceptance or certification ensures that the check will be paid by the bank when presented for payment, but it does not necessarily discharge the drawer or endorsers from their obligations under certain conditions, such as if the certification was obtained through fraudulent means.
The correct answer to the student's question is A. Only S1 is true.